Sagen

Sagen — formally Sagen MI Canada Inc. — is a private mortgage default insurance provider in Canada, formerly known as Genworth Canada, that insures high-ratio mortgages on behalf of lenders alongside CMHC and Canada Guaranty.

Mortgage default insurance protects the lender, not the borrower. If a homeowner defaults and the sale of the property does not recover the outstanding balance, the insurer reimburses the lender for the shortfall. It is different from mortgage life insurance, which pays a benefit on death, and from title insurance, which covers title defects. A borrower with a small down payment does not receive a payout from Sagen; the coverage sits behind the lender's balance sheet.

Where Sagen fits in the Canadian market

Sagen is a federally regulated insurer supervised by OSFI. It competes with CMHC, the federal Crown corporation, and with Canada Guaranty, another private insurer. Lenders generally require mortgage default insurance whenever the loan exceeds 80% of the property's value, so a buyer with a modest down payment often ends up with lender-arranged coverage from Sagen or Canada Guaranty rather than from CMHC.

All three insurers operate under the same federal framework for high-ratio lending. Minimum down payment rules, the maximum amortization period for insured loans, the property price ceiling for insurability, and the mortgage stress test come from government and OSFI rules rather than from an insurer's preference. Insurers do differ in underwriting nuance — documentation requirements, treatment of credit history, and rental offset calculations can vary, and some lenders place files with more than one insurer.

What the borrower actually pays

The insurance premium is charged to the borrower, not the lender.
It is calculated as a percentage of the loan amount, tiered by loan-to-value ratio.
It can be paid upfront at closing or added to the mortgage balance and repaid with interest.
Premiums are set by the insurer, so confirm the current schedule with your lender.

Why it matters

Without default insurance, federally regulated lenders generally cannot fund a high-ratio mortgage. That means the insurer's underwriting guidelines help decide whether your file is approved, how much you can borrow, and what documentation you must supply. A file declined by one insurer is sometimes placed with another, but the underlying federal rules do not change, and no insurer guarantees approval. Borrowers should also compare the total cost of an insured mortgage against waiting to save a larger down payment. See the guide to mortgage default insurance for a fuller walkthrough.

Frequently asked questions

Is Sagen the same as CMHC?

No. Sagen MI Canada is a private, federally regulated insurer, while CMHC is a federal Crown corporation. Both provide mortgage default insurance to lenders, and both follow the same federal rules on minimum down payment, maximum amortization, and the stress test. Your lender decides which insurer it uses.

Can I choose Sagen as my mortgage insurer?

Usually not directly. Lenders arrange default insurance through whichever insurer they work with, so the choice is typically made at the lender level rather than by the borrower. If your file is declined, a mortgage professional may be able to place it with a different insurer or lender, but nothing guarantees approval.

Does Sagen insurance protect the homeowner?

It protects the lender against loss if a borrower defaults and the property sale falls short. The borrower pays the premium but receives no payout. Government-backed and private default insurance are not the same as mortgage life insurance or creditor insurance, which are separate products.