Calculate your mortgage default insurance premium. See exactly how much CMHC insurance will cost based on your down payment and purchase price.
Required Under 20%
Less than 20% down payment
Added to Mortgage
Premium can be financed
Provincial PST
Ontario & Quebec add PST
CMHC max insurable: $1,500,000
Ontario & Quebec charge PST on CMHC premiums
CMHC Insurance Premium
$13,950
Premium Rate
3.10%
$1,116
*Premium rates as of 2024. Actual rates may vary.
CMHC mortgage default insurance is required when you purchase a home with less than 20% down payment. This insurance protects the lender (not you) in case you default on your mortgage payments.
The Canada Mortgage and Housing Corporation (CMHC) is the largest provider of mortgage default insurance in Canada. Genworth and Canada Guaranty also offer similar products. The premium is calculated as a percentage of your mortgage amount and can be added to your mortgage balance.
The only way to avoid paying CMHC insurance is to make a down payment of 20% or more. While this requires a larger upfront investment, you'll save thousands on insurance premiums and have a lower mortgage balance.
For example, on a $500,000 home with 10% down, the CMHC premium would be $13,950 (plus PST in some provinces). With 20% down, you'd pay $0 in insurance premiums but need an additional $50,000 for your down payment.
Let us help you find the best mortgage rate and minimize your insurance costs.
CMHC (Canada Mortgage and Housing Corporation) mortgage default insurance protects the lender if you default on your mortgage. It's required when your down payment is less than 20% of the purchase price. The premium ranges from 2.80% to 4.00% of the mortgage amount and is typically added to your mortgage balance.
CMHC premiums are based on your loan-to-value ratio: 4.00% for 5-9.99% down payment, 3.10% for 10-14.99% down, and 2.80% for 15-19.99% down. On a $500,000 home with 5% down ($25,000), the premium is $19,000, bringing your total mortgage to $494,000.
Yes — by making a down payment of 20% or more. For a $500,000 home, that's $100,000 down. Some buyers also use gifted down payments from family or access the First Home Savings Account (FHSA) to reach the 20% threshold faster.
No. CMHC mortgage insurance protects the lender, not you. Home insurance (also called property insurance or homeowner's insurance) protects you against fire, theft, and damage. Both are required when you have a mortgage, but they serve completely different purposes.
Starting December 2024, first-time home buyers and new construction purchasers can get insured mortgages on properties up to $1.5 million (up from $1 million) and can use 30-year amortization (up from 25 years). This significantly increases buying power for qualified first-time buyers.
The borrower (homebuyer) pays the CMHC insurance premium, even though the insurance protects the lender. The premium can be paid upfront or added to your mortgage balance and paid over the life of the loan.
CMHC premiums are generally not refundable. However, if you sell your home and purchase another within a certain timeframe, you may be able to port your existing insurance to the new mortgage.
As of December 2024, CMHC insurance is available up to $1.5 million for first-time home buyers and new construction purchases (with 30-year amortization available). For resale homes purchased by repeat buyers, the limit remains $1 million (25-year max amortization). Homes over these thresholds require a minimum 20% down payment.
Ontario (8%) and Quebec (9%) are the only provinces that charge Provincial Sales Tax on CMHC insurance premiums. This PST must be paid upfront at closing and cannot be added to your mortgage.
Yes, Sagen (formerly Genworth) and Canada Guaranty also provide mortgage default insurance with similar premium rates. Your lender typically chooses which insurer to use based on their business relationships.
CMHC insurance is generally only available for owner-occupied properties. Investment and rental properties typically require a minimum 20% down payment and conventional (non-insured) financing.
The minimum down payment is 5% for homes up to $500,000. For homes between $500,000 and $1,499,999, you need 5% on the first $500,000 and 10% on the portion above. For example, a $1.2M home for a first-time buyer requires $95,000 down (5% of $500K + 10% of $700K). Homes $1.5M+ require 20% down.
Interestingly, insured mortgages often qualify for slightly lower interest rates than conventional mortgages. Because the lender's risk is reduced by the insurance, they may offer better rates on high-ratio mortgages.
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