Which of the following would generally NOT be a characteristic of a mortgage product eligible for CMHC, Sagen, or Canada Guaranty mortgage default insurance?

Question: Which of the following would generally NOT be a characteristic of a mortgage product eligible for CMHC, Sagen, or Canada Guaranty mortgage default insurance?

Answer options:

• The property is a 4-unit detached dwelling where the owner occupies one unit. ✅ The borrower has a credit score below 600, but outstanding debt is minimal.
• The property is a newly constructed home in a major urban center.
• The amortization period is 25 years for a purchase with a 10% down payment.

Correct answer: The borrower has a credit score below 600, but outstanding debt is minimal.

Explanation: All mortgage default insurers (CMHC, Sagen, Canada Guaranty) have minimum credit score requirements for borrowers, generally requiring a minimum credit score of 600-680, depending on various factors. A credit score below 600 would typically render a borrower ineligible for insurable high-ratio mortgages, regardless of other factors.