14B Harbour St
Toronto, ON, M5J 2Y4
CMHC Mortgage Insurance Calculator
Planning to buy a home with less than a 20% down payment? In Canada, mortgage default insurance (commonly known as CMHC insurance) is mandatory for high-ratio mortgages. Use our interactive calculator below to estimate your exact premium rates, compare down payment scenarios, and determine your final total mortgage amount seamlessly.
CMHC Insurance Calculator
Asking price
- Down payment
If the purchase price is:
- $500,000 or less – Your minimum down payment is 5%
- Between $500,000 and $1,499,999 – Your minimum down payment is 5% of the first $500,000 PLUS 10% of the remaining portion of the home price
- $1,500,000 or more – Your minimum down payment is 20%
+ CMHC insurance
Mortgage default insurance, commonly referred to as CMHC insurance, protects the lender in case the borrower defaults on the mortgage. Mortgage default insurance is required on all mortgages with down payments of less than 20%.
$-
= Total mortgage
$-
Frequently Asked Questions
What is CMHC mortgage insurance?
Mortgage default insurance, often called CMHC insurance, protects your mortgage lender in the event that you default on your loan payments. It is mandatory in Canada if your down payment is less than 20% of the home's purchase price.
How is CMHC insurance calculated?
Your premium is calculated as a percentage of your total loan amount. The percentage rate depends entirely on your Loan-to-Value (LTV) ratio. A smaller down payment scales a higher premium bracket (ranging normally from 2.80% up to 4.00%). This premium amount is simply added directly onto your core mortgage balance.
What are the minimum down payment rules in Canada?
For homes priced up to $500,000, the minimum down payment is 5%. For homes priced between $500,000 and $1,499,999, you need 5% on the first $500,000 plus 10% on the remaining balance. Homes priced at $1,500,000 or greater require a flat minimum of 20% down, meaning they do not qualify for CMHC insurance.
Can I pay my CMHC premium upfront in cash?
Yes, you can choose to pay the entire CMHC premium upfront to minimize your monthly payments. However, most Canadian homebuyers prefer to roll the premium amount straight into their total mortgage balance to preserve their liquid cash for closing costs.
Do I have to pay taxes on CMHC insurance?
While the premium itself is rolled into your mortgage, provincial sales tax (PST) on the insurance premium is applicable if you live in Ontario, Quebec, or Saskatchewan. This tax cannot be added to your mortgage loan and must be paid in full as cash through your real estate lawyer on closing day.