What Is a CMHC Insurance Calculator?
If your down payment is less than 20%, Canadian law requires you to pay mortgage default insurance — often referred to as CMHC insurance. Our CMHC Insurance Calculator helps you estimate exactly how much this added cost will be, based on your purchase price and down payment.
With a quick and easy input process, this tool shows you your total insurance premium, the new adjusted mortgage amount, and the impact on your monthly payments.
CMHC Insurance Calculator.
CALCULATE YOUR CMHC PREMIUM
CMHC INSURANCE RESULTS
MORTGAGE DETAILS
PAYMENT OPTIONS
CMHC INSURANCE: IMPORTANT INFORMATION
Understanding CMHC Mortgage Default Insurance.
Who Needs CMHC Insurance?
CMHC insurance is mandatory for all high-ratio mortgages (down payments less than 20%) in Canada. It protects lenders in case borrowers default on their mortgage payments, which allows lenders to offer competitive interest rates to borrowers with smaller down payments.
How is the Premium Calculated?
The premium is calculated as a percentage of your mortgage amount (not the purchase price). This percentage is determined by your loan-to-value ratio (LTV) – the higher your down payment, the lower your premium rate. The premium can be paid as a lump sum or added to your mortgage and paid over the life of your loan.
Provincial Sales Tax
In Ontario, Manitoba, and Quebec, provincial sales tax on the premium must be paid upfront and cannot be added to the mortgage. In other provinces, there is no provincial sales tax on CMHC premiums.
CMHC Restrictions
CMHC insurance is not available for:
- Properties with a purchase price of $1 million or more
- Properties with more than 4 units
- Investment properties with a down payment less than 20%
- Mortgages with amortization periods greater than 25 years
Alternatives to CMHC
While CMHC is the largest provider of mortgage default insurance in Canada, there are alternatives such as Genworth Financial and Canada Guaranty. Premiums and qualification criteria may vary slightly between these insurers.
What Does the CMHC Insurance Calculator Do?
The CMHC Insurance Calculator computes the cost of your mortgage insurance premium based on your:
- Purchase Price
- Down Payment Amount or Percentage
- Loan-to-Value (LTV) Ratio
- Mortgage Amount Before and After Insurance
It uses the official CMHC insurance rate tiers (2.80% to 4.00%) based on your LTV ratio and applies them to give you an accurate premium cost.
It’s a critical budgeting tool for homebuyers with less than 20% down.
Who Should Use This CMHC Insurance Calculator?
This calculator is ideal for:
- First-time homebuyers
- Buyers with limited down payment savings
- Anyone qualifying for a high-ratio mortgage
- Buyers purchasing condos, townhouses, or resale homes under $1,000,000
- Homeowners refinancing with less than 20% equity
If you’re buying with less than 20% down, this calculator is essential to estimate your full mortgage cost.
Why Use a CMHC Insurance Calculator Before You Buy?
Using this tool gives you a full picture of your total mortgage costs, not just the purchase price. It helps you:
- Estimate your final loan amount including CMHC insurance
- See how your premium changes based on down payment
- Plan ahead for monthly payments more accurately
- Avoid last-minute surprises at closing
Many buyers don’t realize that the premium is added to your mortgage balance — not paid upfront — increasing your monthly payments.
What This Calculator Doesn’t Include
While the calculator accurately estimates your CMHC insurance premium, it doesn’t cover:
- Land transfer taxes
- Legal fees
- Appraisal costs
- Property taxes and utilities
- Home insurance
Use this tool alongside our Mortgage Affordability Calculator or Closing Cost Calculator for a complete financial picture.
Tips to Lower or Avoid CMHC Insurance
- Put down 20% or more – this is the only way to avoid CMHC premiums entirely
- Use gifted funds from family – often allowed toward your down payment
- Buy a less expensive property – lower price = lower required down payment
- Wait and save longer – even 1–2% more down can reduce the premium rate
Use this calculator to experiment with different down payment percentages and see how much you can save.
Pro Tip
CMHC is one of three mortgage insurers in Canada (along with Sagen and Canada Guaranty). While the rates are similar, CMHC is the most widely used and recognized. Your lender will typically choose the insurer, not you — but the cost structure remains consistent.
- Mortgage Payment Calculator
- Mortgage Affordability Calculator
- First-Time Home Buyer
- Land Transfer Tax Calculator
Trusted External Resources:
These external sources provide deeper insights into mortgage regulations, insurance, and government programs.
Whether you’re buying your first home or renewing your mortgage, knowing your monthly payments is essential. Our Mortgage Calculator is free, fast, and easy to use — and gives you the clarity you need to move forward with confidence.
Try it now, and explore your options before you sign.