If your down payment is less than 20% of the purchase price, the mortgage must be insured. The premium is added to the mortgage principal in most cases, so you borrow more and pay interest on it.
Minimum down payment
The minimum down payment is 5% of the first $500,000 of the price and 10% of the rest, for purchases below $1,500,000. At $1,500,000 or more, the minimum is 20%. The down payment calculator works it out for any price.
How the premium rate is set
The premium depends on the loan-to-value ratio, which is the loan divided by the price. The calculator uses these bands:
- Loan-to-value of 80% or less: no premium.
- Above 80% up to 85%: 2.8% of the loan.
- Above 85% up to 90%: 3.1% of the loan.
- Above 90%: 4.0% of the loan.
Amortization of 25 years or longer
An insured amortization over 25 years adds a 0.2% surcharge to the premium. Longer amortizations are only available to certain buyers, such as first-time buyers or buyers of new builds. Check your eligibility with your lender.
Sales tax on the premium
Some provinces charge sales tax on the premium. It cannot be added to the mortgage, so you pay it at closing. The CMHC insurance calculator lets you enter the rate for your province.
Check the current rates
Insurance rules and premium rates can change. Confirm the current figures on the CMHC site before you make an offer.
Try the cmhc insurance calculator →
Official source
CMHC · Mortgage loan insurance cost
This guide explains general rules. Confirm your figures with your lender, lawyer, or the official source before you act.