Which of the following properties would likely require a high-ratio mortgage from a conventional lender (e.g., a bank) due to CMHC-mandated insurance requirements?

Question: Which of the following properties would likely require a high-ratio mortgage from a conventional lender (e.g., a bank) due to CMHC-mandated insurance requirements?

Answer options:

• A commercial retail unit with a 25% down payment. ✅ A residential duplex for owner-occupation with a 10% down payment.
• A single-family home being purchased as a rental property with a 20% down payment.
• Agricultural land being purchased with 50% equity.

Correct answer: A residential duplex for owner-occupation with a 10% down payment.

Explanation: Residential properties for owner-occupation with less than a 20% down payment require mortgage loan insurance (i.e., are high-ratio). Rental properties or non-owner-occupied properties generally require a larger down payment (e.g., 20% minimum) to be considered 'conventional' by CMHC standards (if eligible at all).