Canada’s second-largest private mortgage insurer, AIG United Guaranty Canada, confirmed Friday that it supports the new policy provisions announced by the Department of Finance for loans that are default insured under the Government of Canada Guarantee.

“We view this as a prudent approach taken by the government to support the long-term health and sustainability of the Canadian housing market,” said Andy Charles, president of AIG United Guaranty Canada, in a release.

“We support this direction and will amend our product line-up to reflect the new policy set out by the Department of Finance, commencing October 15, 2008, for all government guarantee mortgage insured loans,” head

AIG United Guaranty Canada has established a strong presence in the Canadian mortgage market since beginning operations in November 2006.