The main function of mortgage insurance is to provide credit support for qualified borrowers applying for low down payment mortgages. In the construction process of China’s mortgage insurance, government should play a leading role, establish policy-oriented mortgage insurance agencies to provide low down payment mortgages insurance for middle-low income residents so as to ensure their basic requirement of living. In addition, government may encourage, guide and support the development of commercial mortgage insurance according to the actual needs of the housing market of China to provide insurance for the borrowers who meet specific condition and who apply for high proportion of mortgage loan.