An investor, Robert, wants to purchase a rental property for $1,200,000 in Montreal. He plans to put down a 20% down payment. Would this mortgage be considered insured, insurable, or uninsured?

Question: An investor, Robert, wants to purchase a rental property for $1,200,000 in Montreal. He plans to put down a 20% down payment. Would this mortgage be considered insured, insurable, or uninsured?

Answer options:

• Insured
• Insurable, but uninsured for investor property. ✅ Uninsured, due to the property type and value.
• Insurable, but uninsured due to the loan-to-value.

Correct answer: Uninsured, due to the property type and value.

Explanation: A mortgage for a rental property of $1,200,000 with a 20% down payment is typically considered uninsured due to the property value exceeding the $1,000,000 insurable limit and it being a non-owner-occupied property. Furthermore, the 20% down payment means it's not high-ratio and therefore wouldn't require insurance.