[jorian]

PMI is mortgage default insurance. With 100% financing the lender will be upside down if there is a foreclosure because there is no equity. In Canada the lender requires this insurance if you put down less than 25%. In Canada there are 2 insurers, CMHC and Genworth (formerly GE). You don't really get "nothing" out of PMI because it allows you to get into the housing market without a downpayment. In a rising market this cost can be offset by the increase in value of your property. In a declining market it could mean you owe more than your house is worth.