Which of the following properties would typically NOT be eligible for mortgage default insurance from CMHC, Sagen, or Canada Guaranty?

Question: Which of the following properties would typically NOT be eligible for mortgage default insurance from CMHC, Sagen, or Canada Guaranty?

Answer options:

• A duplex where the buyer intends to occupy one unit and rent out the other.
• A single-family detached home with a maximum loan amount of $950,000.
• A residential property where the buyer has less than a 5% down payment. ✅ A property purchased for investment purposes only, with no owner-occupancy.

Correct answer: A property purchased for investment purposes only, with no owner-occupancy.

Explanation: Mortgage default insurance generally requires the property to be owner-occupied or a non-owner-occupied property that is 1-4 units, with specific exceptions. Properties purchased purely for investment purposes, without any owner-occupancy or meeting other specific criteria, often do not qualify for high-ratio default insurance.