Name two common types of mortgage default insurance providers in Canada.

The correct answer highlights two prominent providers of mortgage default insurance in Canada: Canada Mortgage and Housing Corporation (CMHC) and Genworth Canada.

CMHC is a well-established public corporation that plays a crucial role in the Canadian housing market by providing mortgage insurance that protects lenders against default. This insurance is typically required for homeowners who are making a down payment of less than 20% of the home's value. The purpose of this coverage is to allow more Canadians to access housing by enabling lenders to finance a higher proportion of the property value, thereby reducing the risk to those lenders.

Genworth Canada, on the other hand, is a private provider of mortgage default insurance. It also offers similar protections for lenders while providing borrowers with the opportunity to secure mortgages with lower down payments. As one of the key players in this sector, Genworth Canada complements CMHC's offerings but operates independently in the private insurance market.

The other choices presented in the question include banks and financial institutions which are primarily lenders and do not provide mortgage default insurance. While they may be involved in financing mortgages, they are not providers of the specific insurance that protects lenders in case of borrower default. This distinction is critical in understanding the role of mortgage default insurance in enabling homeownership and supporting the