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Second mortgages involve an extra loan using any remaining home equity as collateral and possess higher interest levels. The minimum downpayment for properties over $500,000 is 10% rather than only 5% for more affordable homes. Mortgage loan insurance protects the financial institution against default, allowing high ratio mortgages essential for affordability. Mortgage loan insurance protects lenders against default risk on high ratio mortgages. Comparison mortgage shopping could save tens of thousands in the life of a mortgage. Lenders may allow porting a home loan to a new property but generally cap the total amount at the first approved value. Conventional mortgages require loan-to-value ratios of less than 80% to avoid insurance requirements.
