CMHC insurance premium rates explained
For an owner-occupied property with one to four units, CMHC applies a percentage to the loan amount. The percentage rises as the loan-to-value ratio rises. In plain English: the smaller the down payment, the larger the premium.
| Loan-to-value | Equivalent equity | CMHC premium |
|---|---|---|
| Up to 65% | 35%+ | 0.60% |
| 65.01%–75% | 25%–34.99% | 1.70% |
| 75.01%–80% | 20%–24.99% | 2.40% |
| 80.01%–85% | 15%–19.99% | 2.80% |
| 85.01%–90% | 10%–14.99% | 3.10% |
| 90.01%–95% | 5%–9.99% | 4.00% |
| 90.01%–95% | Non-traditional source | 4.50% |
Most ordinary purchases with 20% or more down do not need mortgage default insurance, so the calculator returns a $0 premium at that threshold even though CMHC publishes lower-LTV rates for applicable insured situations. Premiums may differ for portability, refinance, rental properties and other programs.[1]
A $70,000 down payment leaves a $630,000 mortgage, or 90% LTV. At 3.10%, the premium is $19,530. If financed, the mortgage becomes $649,530. In Ontario, estimated 8% tax on the premium adds $1,562.40 in closing cash.
When do you need mortgage default insurance in Canada?
A borrower putting down less than 20% will typically need mortgage loan insurance. The lender arranges it; the borrower pays the premium. It protects the lender—not the buyer—if the mortgage goes into default.[2]
This creates a high-ratio mortgage and usually triggers an insurance requirement.
Approval still depends on the property, credit, debt-service ratios, income documentation and the lender’s underwriting.
You do not normally buy CMHC insurance directly. The approved lender submits the application and passes the premium cost to you.
It can usually be added to the mortgage or paid as a lump sum. Financing it means paying mortgage interest on it.
Federal reforms increased the insured-mortgage price cap from $1 million to $1.5 million effective December 15, 2024.[3] A purchase above the cap generally needs at least 20% down and is outside this calculator’s CMHC estimate.
How much down payment do you need?
The federal minimum is graduated. The percentage shown in a listing or pre-approval may not equal the minimum cash needed because closing costs and premium tax sit outside the down payment.
| Purchase price | Minimum down payment calculation |
|---|---|
| $500,000 or less | 5% of the purchase price |
| Over $500,000 to $1.5 million | 5% of the first $500,000 + 10% of the portion above $500,000 |
| Over $1.5 million | Generally 20% or more; not eligible under the standard insured price cap |
For a $900,000 home, the minimum is $25,000 on the first $500,000 plus $40,000 on the remaining $400,000, for a total of $65,000 (7.22%). The calculator checks your entry against this graduated rule.[2]
Does a 30-year amortization lower the cost?
It lowers the required monthly payment, but it does not lower the total cost. More payment periods generally mean more lifetime interest, and insured amortization beyond 25 years may carry a premium surcharge.
25-year amortization
- Higher monthly payment
- Less interest if the rate path is identical
- Standard maximum for many insured borrowers
30-year amortization
- Lower required monthly payment
- More lifetime interest
- Available on insured mortgages to first-time buyers and buyers of new builds under federal reforms
The calculator adds 0.20 percentage points to the premium when a 30-year insured amortization is selected, reflecting CMHC’s published surcharge for amortization beyond 25 years.[1] Your lender and insurer determine final eligibility and pricing.
How to avoid CMHC insurance with 20% down
The cleanest route is a down payment of at least 20%. But “avoiding the premium” is not automatically the cheapest overall decision; compare timing, rates, rent while saving and the opportunity cost of tying up more cash.
Multiply purchase price by 0.20, then subtract savings already earmarked for the down payment.
Do not put every dollar into the down payment. Legal fees, land transfer tax, adjustments, inspection and moving costs need their own budget.
Insured mortgages can receive sharper rates because the lender’s default risk is insured. Ask for both scenarios rather than comparing premium alone.
If reaching 20% takes years, compare additional rent and potential home-price movement with the insurance cost. There is no universal break-even.
A mortgage with exactly 20% down may be “insurable” rather than borrower-paid insured. The lender may insure it at its own cost. That is different from a high-ratio mortgage premium charged to you.
Are there alternatives to CMHC?
Yes. CMHC is one of three major mortgage default insurers in Canada. Sagen and Canada Guaranty offer lender-distributed insurance as well. The borrower usually does not shop the insurer independently; the lender selects an insurer based on the mortgage and its own channel.
| Path | What changes | What to compare |
|---|---|---|
| CMHC-insured | Federal Crown corporation insurance | Eligibility, premium, insurer programs |
| Sagen / Canada Guaranty | Private mortgage insurers | Lender availability and underwriting fit |
| 20%+ down | No borrower-paid high-ratio premium in a typical purchase | Rate, liquidity and time needed to save |
| Alternative lender | Different income or credit underwriting may be available | Higher rates, fees, term restrictions and exit plan |
Do not confuse mortgage default insurance with mortgage life, disability or critical-illness insurance. Default insurance protects the lender. Creditor insurance is an optional product intended to cover certain borrower-related risks, subject to its policy terms.
Ask about rate, fees, prepayment privileges, penalty calculation and insurer—not just payment.
CMHC insurance questions, answered
Short answers to the questions buyers most often ask before seeking a pre-approval.
How much is CMHC insurance on a $500,000 house?
At 5% down, the base mortgage is $475,000 and 95% LTV. Using the standard 4.00% rate, the premium is $19,000. A 30-year insured amortization may add a surcharge. Provincial premium tax may also be due at closing.
Is CMHC insurance required with 20% down?
Usually no for a standard owner-occupied purchase. The lender may still have specific insurance or underwriting requirements, particularly for an unusual property or borrower profile.
Can I pay the CMHC premium in cash?
Yes, the premium can generally be paid up front instead of added to the mortgage. If it is added to the mortgage, you pay interest on it. Any applicable provincial sales tax cannot be rolled into the mortgage.
Does CMHC insurance protect me if I lose my job?
No. Mortgage default insurance protects the lender if you default. It is not job-loss, disability, life or payment-protection coverage.
Do first-time home buyers pay a lower CMHC premium?
Not automatically. First-time status can affect access to a 30-year insured amortization and other government programs, but the core premium schedule is driven primarily by loan-to-value and applicable surcharges.
Can I get CMHC insurance on a rental property?
CMHC publishes separate premium schedules and rules for eligible small rental properties. This calculator is intentionally limited to an owner-occupied property with one to four units.
What happens to the premium if I sell?
The premium is not generally refunded simply because you sell. CMHC portability may provide a partial premium credit when an existing insured borrower buys another home within specified timelines and meets the rules.
Is the calculator a mortgage approval?
No. It is an educational estimate. A lender checks income, debts, credit, property, stress-test qualification and insurer rules before issuing an approval.
Official sources
This calculator is a planning tool, not a lender quote. Rules can change, and a lender’s exact premium and tax treatment controls.
- CMHC — Mortgage loan insurance premium information for homeowner and small rental loans. Premium schedule, sales-tax provinces, portability credits and surcharge information.
- Financial Consumer Agency of Canada — How much you need for a down payment. Minimum-down-payment method, insurance explanation and payment treatment.
- Department of Finance Canada — Mortgage reforms. $1.5 million insured-price cap effective December 15, 2024.
- Ontario Ministry of Finance — Insurance and benefits plans. 8% RST on taxable insurance premiums.
- Revenu Québec — Collecting the tax on insurance premiums. 9% tax rate on taxable premiums.
- Government of Saskatchewan — Insurance contracts. 6% PST on taxable insurance premiums.
Owner-occupied purchase, traditional down payment unless selected otherwise, monthly payments, constant entered interest rate for the entire amortization, and Canadian mortgage convention (nominal annual rate compounded semi-annually). Figures are rounded to cents internally and displayed to the nearest dollar.