MortgageAbs

cmhc insurance calculator

CMHC Insurance Calculator.

What is CMHC Insurance? In Canada, mortgage default insurance (often called CMHC insurance) is required for all mortgages with down payments less than 20% of the purchase price. This insurance protects lenders in case borrowers default on their mortgage payments.

CALCULATE YOUR CMHC PREMIUM

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Down Payment Guidelines: For homes under $500,000, a minimum 5% down payment is required. For homes $500,000 to $999,999, 5% is required for the first $500,000 and 10% for the portion above $500,000. For homes $1,000,000 or more, a minimum 20% down payment is required.

CMHC INSURANCE RESULTS

MORTGAGE DETAILS
Purchase Price
$500,000.00
Down Payment
$50,000.00 (10.00%)
Mortgage Amount
$450,000.00
Loan-to-Value Ratio
90.00%
CMHC Premium Rate
3.10%
$13,950.00
CMHC INSURANCE PREMIUM
PAYMENT OPTIONS
Option 1: Add to Mortgage
$463,950.00
Effective LTV with Premium
92.79%
Option 2: Pay Upfront
$13,950.00
Provincial Sales Tax (PST)
$0.00
Note: You can choose to add the CMHC premium to your mortgage (Option 1) or pay it as a lump sum (Option 2). In Ontario, Manitoba, and Quebec, provincial sales tax on the premium cannot be added to the mortgage and must be paid upfront.

CMHC PREMIUM RATE TABLE

Down Payment Loan-to-Value Standard Premium Self-Employed Premium
5% – 9.99% 90.01% – 95.00% 4.00% 4.50%
10% – 14.99% 85.01% – 90.00% 3.10% 3.60%
15% – 19.99% 80.01% – 85.00% 2.80% 3.30%
20% or more 80.00% or less 0.00%* 0.00%*
* CMHC insurance is not required for down payments of 20% or more. However, some lenders may still require it for certain properties or borrowers.
Note: Extended amortization surcharges may apply. For properties with 4+ units, different premiums may apply. Investment properties require a minimum 20% down payment.

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.

Save More with a Bigger Down Payment

Let’s look at an example:

  • Purchase price: $600,000
  • Down payment: 5% ($30,000)
  • Estimated CMHC premium: $24,000
  • If you increase to 10% ($60,000), the premium drops to $17,100 — a savings of nearly $7,000

More on CMHC Insurance

Want to dive deeper into how mortgage insurance works in Canada? Visit the official CMHC page for detailed information.

Want to see how this premium affects your monthly payments?

Use my Mortgage Payment Calculator to get the full picture.