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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%.
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= Total mortgage
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Questions
CMHC mortgage insurance FAQ
What is CMHC mortgage insurance?
Mortgage default insurance protects the lender if a borrower stops paying. In Canada it’s required when your down payment is less than 20% of the purchase price. CMHC, Sagen and Canada Guaranty all offer it; people often call it “CMHC insurance” whichever insurer is used.
How is the CMHC premium calculated?
The premium is a percentage of your mortgage amount, based on your down payment: 4.00% with 5% to 9.99% down, 3.10% with 10% to 14.99% down, and 2.80% with 15% to 19.99% down. It’s usually added to your mortgage. A 30-year amortization adds 0.20% to the premium.
What is the minimum down payment in Canada?
For homes up to $500,000, 5% of the price. For homes from $500,000 up to $1,499,999, 5% of the first $500,000 plus 10% of the portion above $500,000. For homes priced at $1,500,000 or more, 20%, so mortgage insurance isn’t available.
Can I get a 30-year amortization with CMHC insurance?
Yes, if you’re a first-time home buyer or you’re buying a newly built home. Other insured mortgages are limited to 25 years. A longer amortization lowers your payment but adds 0.20% to the premium and increases the total interest you pay.
Do I pay tax on CMHC insurance in Ontario?
Yes. Ontario charges 8% sales tax on the premium. Unlike the premium, the tax can’t be added to your mortgage, so you pay it to your lawyer on closing. For example, a $20,000 premium means $1,600 in tax due at closing. Quebec and Saskatchewan also tax the premium.
Can I pay the CMHC premium upfront?
Yes, you can pay the premium in cash at closing, but most buyers add it to the mortgage to keep cash for the down payment and closing costs.
Do I still have to pass the mortgage stress test?
Yes. Insured mortgages must qualify at the higher of 5.25% or your contract rate plus 2%. Use our mortgage calculator at that rate to see the payment you’d need to qualify for.