What is CMHC mortgage insurance?

CMHC (Canada Mortgage and Housing Corporation) mortgage insurance protects lenders if a borrower defaults on their mortgage. It's required in Canada for homebuyers with a down payment of less than 20% of the purchase price. The insurance allows buyers to purchase homes with as little as 5% down.

How much does CMHC insurance cost?

CMHC insurance premiums range from 2.80% to 4.00% of the mortgage amount, depending on your down payment percentage. For a 5% down payment (95% LTV), the premium is 4.00%. For 10% down (90% LTV), it's 3.10%. For 15% down (85% LTV), it's 2.80%. Provincial sales tax may also apply.

What is the minimum down payment for CMHC insurance?

The minimum down payment is 5% for homes priced up to $500,000. For homes priced between $500,000 and $1,000,000, you need 5% on the first $500,000 plus 10% on the portion above $500,000. CMHC insurance is not available for homes priced over $1,000,000.

Can I add CMHC premium to my mortgage?

Yes, CMHC insurance premiums can be added to your mortgage principal and paid off over the life of the loan. This means you don't need to pay the premium upfront, but you'll pay interest on the premium amount. Alternatively, you can pay the premium as a lump sum at closing.

Is provincial tax charged on CMHC insurance?

Yes, in Ontario and Quebec, provincial sales tax (PST) is charged on CMHC insurance premiums. Ontario charges 8% PST and Quebec charges 9% QST. This tax cannot be added to the mortgage and must be paid at closing.

What is the maximum home price for CMHC insurance?

For insured mortgages with less than 20% down payment, the maximum property purchase price is $1,000,000. Properties priced above this amount require a minimum 20% down payment and do not qualify for CMHC insurance.

CMHC Insurance Calculator

Calculate your mortgage insurance premium for Canadian home purchases with less than 20% down payment.

Canada Mortgage Insurance Calculator

Estimate CMHC, Sagen, or Canada Guaranty mortgage insurance premiums

For Canadian Home Buyers

Property Details

Home Purchase Price (CAD) Maximum $1,000,000 for insured mortgages

Down Payment Amount (CAD) Minimum 5% of purchase price

Down Payment Percentage 5% minimum (5-19.99% requires insurance)

Province Some provinces charge tax on insurance

Mortgage Details

Mortgage Interest Rate (%) Current mortgage rate

Amortization Period Maximum 25 years for insured mortgages

Payment Frequency How often you make payments

Add Premium to Mortgage? Premium can be financed

Insurance Premium Results

CMHC Premium

0% of mortgage

Provincial Tax

Due at closing

Monthly Payment

Principal + Interest

Total Mortgage

Including premium

Insurance Premium Breakdown

90%

Loan-to-Value Ratio

Mortgage / Home Value

3.10%

Premium Rate

Based on LTV

Total Insurance Cost

Premium + Tax

Loan-to-Value (LTV) Ratio

90% LTV

0% 80% (No insurance) 85% 90% 95% 100%

Mortgage Calculation

Home Purchase Price $0

Down Payment $0

Base Mortgage Amount $0

CMHC Premium Added $0

Total Mortgage $0

Insurance Premium Details

Loan-to-Value Ratio 90%

Premium Rate 3.10%

CMHC Premium $0

Provincial Tax $0

Total Insurance Cost $0

CMHC Premium Rate Schedule

5% - 9.99% 90.01% - 95% 4.00% -

10% - 14.99% 85.01% - 90% 3.10% -

15% - 19.99% 80.01% - 85% 2.80% -

20%+ 80% or less 0% (No insurance) -

Total Cost Breakdown

Down Payment

Base Mortgage

CMHC Premium

Provincial Tax

Payment Summary

Monthly Payment $0

Bi-weekly Payment $0

Total Payments (Over Term) $0

Total Interest Paid $0

                    Cash Needed at Closing
                    $0
                

Quick Summary

Home Price

Down Payment

CMHC Premium

Monthly Payment

Important Information

Maximum Purchase Price CMHC insurance is only available for homes priced at $1,000,000 or less with less than 20% down.

Minimum Down Payment 5% on first $500K, plus 10% on amount above $500K. Properties over $1M need 20% minimum.

Provincial Tax Ontario (8%), Quebec (9%), and Saskatchewan (6%) charge PST/QST on CMHC premiums. Tax must be paid at closing.

Maximum Amortization Insured mortgages are limited to 25-year amortization. 30-year terms require 20%+ down payment.

Understanding CMHC Mortgage Insurance

What is CMHC Insurance?

CMHC (Canada Mortgage and Housing Corporation) mortgage insurance protects lenders against default when homebuyers make a down payment of less than 20%. This insurance allows Canadians to purchase homes with as little as 5% down payment, making homeownership more accessible. While the buyer pays the premium, the insurance actually protects the lender.

Premium Rates by LTV

5% - 9.99% down: 4.00% premium (95% - 90.01% LTV)
10% - 14.99% down: 3.10% premium (90% - 85.01% LTV)
15% - 19.99% down: 2.80% premium (85% - 80.01% LTV)
20%+ down: No insurance required (80% or less LTV)

Minimum Down Payment Rules

Homes up to $500,000: 5% minimum down payment
$500,000 - $999,999: 5% on first $500K + 10% on remainder
$1,000,000+: 20% minimum (no insurance available)
Down payment must come from own resources or gift
Borrowed down payments have restrictions

Insurance Providers

CMHC: Government-owned, most common
Sagen (Genworth): Private insurer
Canada Guaranty: Private insurer
All use the same premium rate structure
Lender chooses which insurer to use

Provincial Sales Tax

Ontario: 8% PST on premium
Quebec: 9% QST on premium
Saskatchewan: 6% PST on premium
Other provinces: No tax on premium
Tax cannot be added to mortgage - due at closing

Key Requirements

Property must be in Canada
Maximum 25-year amortization
Must be owner-occupied (or 1-4 unit rental)
Meet lender's credit and income requirements
Pass stress test at qualifying rate

Canada Mortgage Insurance Calculator

Property Details

Mortgage Details

Insurance Premium Results

Insurance Premium Breakdown

Loan-to-Value (LTV) Ratio

Mortgage Calculation

Insurance Premium Details

CMHC Premium Rate Schedule

Total Cost Breakdown

Payment Summary

Quick Summary

Important Information

Understanding CMHC Mortgage Insurance

What is CMHC Insurance?

Premium Rates by LTV

Minimum Down Payment Rules

Insurance Providers

Provincial Sales Tax

Key Requirements

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