Sagen is one of 3 mortgage default insurance companies available to Canadians. The other 2 companies that provide mortgage default insurance are Canada Guaranty and CMHC.

Sagen insurance provides mortgage lenders with mortgage default insurance allowing them to fund a mortgage with as little as 5% down payment.

Without this insurance protection, the banks would never take on that much risk and you’d need a 20% down payment to purchase a home.

The long and short of it is – If your down payment is less than 20% of the purchase price, you will have to pay a mortgage insurance premium. The Sagen fee that you pay is based on a sliding scale.

Sagen Mortgage Calculator

Down payment
5 – 9.99%
10 – 14.99%
15 – 19.99%
20% or more
Insurance premium
(% of mortgage amount)

Example : If you purchase a home for $500,000 with a down payment of $50,000, from the table above your insurance premium would be 3.1% of amount borrowed. Your Sagen fee would be:   $450,000 x .031 = $13,950

Purchase Price
Downpayment of 10%
Amount of purchase financed
Sagen cost ($450,000 x 0.031)
Total mortgage amount after Sagen fee added

The cost of your Sagen fee ($13,950 in the above example) would then be added to your mortgage amount to give you a total mortgage amount of $463,950. Your mortgage payments are now based on a mortgage amount of $463,950.


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