Estimate your CMHC mortgage loan insurance premium based on your home price and down payment.
Based on CMHC standard premium rates (example)
This calculator estimates the mortgage loan insurance premium required on a "high-ratio" mortgage in Canada - one where your down payment is less than 20% of the home's price - based on your loan-to-value ratio, and shows the total mortgage amount once the premium is added.
If your down payment is 20% or more (LTV of 80% or less), no mortgage default insurance is required. Below that, the premium rate is determined by which loan-to-value band your mortgage falls into, and is applied as a percentage of the loan amount (not the home price).
Formula: Loan Amount = Home Price − Down Payment. LTV = Loan Amount ÷ Home Price × 100. Premium = Loan Amount × (Premium Rate ÷ 100). Total Mortgage = Loan Amount + Premium.
Example premium rate table (example rates — confirm current rates with CMHC): LTV up to 65%: 0.60%; 65.01-75%: 0.60%; 75.01-80%: 1.70%; 80.01-85%: 2.80%; 85.01-90%: 3.10%; 90.01-95%: 4.00%. Mortgages above 95% LTV are generally not insurable.
Example: A CA$500,000 home with a CA$25,000 down payment (5%) gives a loan amount of CA$475,000 and an LTV of 95% - the highest insurable band, with a premium rate of 4.00% (example rate). The premium would be CA$19,000, added to the loan amount for a total mortgage of CA$494,000. (Note: this example is for illustration purposes only - confirm current rates and rules with CMHC or your lender.)
The Canada Mortgage and Housing Corporation (CMHC), along with private insurers Sagen and Canada Guaranty, provide mortgage default insurance that protects the lender (not the borrower) if you default on your mortgage - it allows lenders to offer mortgages to buyers with smaller down payments. Federal rules set minimum down payments based on home price: 5% for the portion of the price up to CA$500,000, and 10% for any portion between CA$500,000 and CA$1.5 million (these thresholds have been adjusted over time, so confirm current figures). Homes priced at CA$1.5 million or more generally aren't eligible for insured mortgages and require a minimum 20% down payment. The insurance premium is typically added to your mortgage principal and amortized along with it (as this calculator assumes), rather than paid upfront in cash - though this means you pay interest on the premium amount over the life of the mortgage. Note that in some provinces (such as Ontario, Quebec, Saskatchewan, and Manitoba), provincial sales tax applies to the insurance premium itself, and that tax portion typically must be paid upfront at closing rather than added to the mortgage.
Mortgage default insurance is generally required when your down payment is less than 20% of the home's purchase price (an LTV ratio above 80%) - sometimes called a "high-ratio" mortgage. If your down payment is 20% or more, you have a "conventional" mortgage and insurance generally isn't required.
The insurance protects the lender if you default on your mortgage, not you directly. However, it indirectly benefits borrowers by enabling lenders to offer mortgages to buyers with smaller down payments who might not otherwise qualify, making homeownership more accessible - the cost of this insurance (the premium) is passed on to the borrower.
As of recent federal rules, the minimum down payment is 5% for the portion of the home price up to CA\$500,000, and 10% for any portion between CA\$500,000 and CA\$1.5 million. Homes priced at CA\$1.5 million or more typically require a minimum 20% down payment and are not eligible for insured mortgages. These thresholds can change, so confirm the current rules with your lender.
In most cases, the premium is added to your mortgage principal and amortized over the life of the loan, which is what this calculator assumes. Some lenders may allow you to pay it upfront in cash, which would reduce your total mortgage amount and the interest paid on the premium over time, but check with your specific lender about whether this option is available.
In provinces like Ontario, Quebec, Saskatchewan, and Manitoba, the CMHC (or private insurer) premium is treated as a taxable insurance product subject to provincial sales tax. Unlike the premium itself, this tax portion generally cannot be added to your mortgage and must be paid as a separate upfront cost at closing - so it's an important amount to budget for separately.
No - while CMHC (a federal Crown corporation) is the best-known, two private insurers, Sagen (formerly Genworth Canada) and Canada Guaranty, also provide mortgage default insurance in Canada with broadly similar premium structures. Your lender typically selects which insurer is used, and rates are generally similar across all three, though it's worth confirming with your lender.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial or mortgage advice. The premium rates and down payment thresholds used are examples and may not reflect current CMHC, Sagen, or Canada Guaranty rates and rules, which change periodically. Always confirm current rates, minimum down payment requirements, and provincial tax treatment with CMHC, your lender, or a qualified mortgage professional.