Case Study · Residential / Prime

Seventeen Years Self-Employed and a New Job: A Major Bank's Insured Mortgage Bought a Maple Ridge Rowhome at About 95%

A married couple were buying a two-bedroom rowhome in Maple Ridge to live in, valued at $600,000, with a little under 6% down.

Closed in 2022 · Published October 19, 2026

Residential
Prime lender
Insured
Purchase
Self-employed
Gift

Value: $600,000
Insured mortgage: about $570,000 plus a premium of about $23,000
Loan-to-value: about 95% of the value
Down payment: $35,000, a little under 6%, with a $10,000 family gift for the closing costs
Rate in 2022: 2.80% (prime less 0.90%), five-year adjustable, 25-year amortization

The Situation

A married couple were buying a two-bedroom rowhome in Maple Ridge to live in, valued at $600,000, with a little under 6% down.

The Challenge

One spouse had co-owned a construction company for close to 17 years and was paid about $77,000, averaged over two years of T4 slips from the company. The other had started a new job as a credit administrator in February 2022, at $48,000, after close to 25 years in similar accounting roles with other employers.

The Solution

In 2022 we placed an insured mortgage of about $570,000 plus a premium of about $23,000 with a major Canadian bank, about 95% of the value, on a five-year adjustable term at 2.80% (prime less 0.90%) with a 25-year amortization, qualified at 5.25%. Long careers, low debt and scores of 820 and 775 carried ratios of about 38% and 43%.

The Outcome

The couple bought the rowhome with $35,000 down from their savings, and a family gift of $10,000 covered the closing costs.

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An insured purchase with a little under 6% down. See the insurance premium on your own price and down payment.

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Step 1 · Your purchase

Insurance program

Borrowed down payment (Flex 95) — borrowing your 5% down payment from a line of credit or loan is allowed with strong credit. It raises the 5%-down premium from 4.00% to 4.50% (the loan payment counts in your debt ratios). Only affects purchases with less than 10% down.

Purchase price

Buying new construction? Enter the price including the 5% GST — insurers calculate the premium on the GST-inclusive price. Insured mortgages cap at $1,499,999 (20% down required at $1.5M+).

Down payment

10% = $90,000

Amortization

Province

PST on the insurance premium is paid at closing in ON (8%), QC (9%) and SK (6%). Other provinces: none.

Insurance premium

$25,110

3.10% of $810,000 loan @ 90.0% LTV

Breakdown

Purchase price$900,000

Down payment$90,000 · 10.0%

Loan before insurance$810,000

Insurance premium (3.10%)$25,110

Total insured mortgage$835,110

Premium can be added to (financed in) the mortgage. PST on the premium, where applicable, is paid in cash at closing.

Premium curve · 8% → 25% down

Watch how the insurance premium drops as you raise your down payment — it hits $0 once you reach 20% (no insurance needed). The curve starts at this home's federal minimum down payment. The marker shows where you are right now.

What this calculator does that most don't

Charges the provincial sales tax on the premium where it applies (ON 8%, QC 9%, SK 6% — Manitoba removed its in 2020) — due in cash at closing, which most calculators quietly omit
Standard insured AND Sagen Insured Stated Income (self-employed) in one tool — switch the program to see the higher stated-income premium
Knows the December 2024 rules: max insured price $1,499,999 (high-ratio, under 20% down — not to be confused with the $999,999 insurable cap) and the first-time-buyer OR new-build gate on 30-year insured amortization, with the 0.20% surcharge applied

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Questions and answers

Questions about this file

How does a lender treat a self-employed owner's income?+

By averaging T4 slips from the company. In this 2022 file one spouse had co-owned a construction company for close to 17 years and was paid about $77,000, averaged over two years of T4 slips.

Does a brand-new job count?+

It can, with a long record in the same work. In this 2022 file the other spouse had started as a credit administrator in February 2022, at $48,000, after close to 25 years in similar accounting roles with other employers.

What did the insured mortgage cost?+

A premium of about $23,000. In this 2022 file the insured mortgage of about $570,000 plus the premium was about 95% of the value at a major Canadian bank.

What rate did the mortgage have to qualify at?+

5.25%. In this 2022 file the five-year adjustable rate was 2.80%, prime less 0.90%, with a 25-year amortization.

Can a family gift cover the closing costs?+

Yes. In this 2022 file the couple put $35,000 down from their savings, and a family gift of $10,000 covered the closing costs; scores of 820 and 775 carried ratios of about 38% and 43%.

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