A high ratio mortgage in Vancouver is a type of loan where the borrower has a down payment of less than 20% of the purchase price of the property. Due to the lower down payment, these mortgages are considered higher risk and thus require mortgage loan insurance, typically provided by the Canada Mortgage and Housing Corporation (CMHC), Sagen, or Canada Guaranty. This insurance protects the lender in case of borrower default but adds an additional cost for the borrower. The premium for this insurance, which can be paid upfront or added to the mortgage amount, is calculated as a percentage of the mortgage and varies based on the down payment amount. The smaller the down payment, the higher the insurance premium. In Vancouver's competitive real estate market, high ratio mortgages are a common tool for first-time homebuyers or those with limited savings, allowing them to enter the housing market sooner. However, it's important to consider the long-term costs, as the added insurance premium increases the overall cost of the mortgage. A mortgage broker, like Elvira Kurmisheva, can provide valuable advice on whether a high ratio mortgage is the right choice for your specific financial situation and help navigate the application process.