CMHC Insurance Calculator Canada 2026

Calculate your CMHC mortgage default insurance premium. Required for Canadian home purchases with less than 20% down payment.

Key Takeaways

  • Mortgage insurance is required by law for down payments under 20% at federally regulated lenders.
  • Premiums range from 2.8% to 4% of the mortgage amount depending on your loan-to-value ratio.
  • The premium can be added to your mortgage, but provincial sales tax on the premium must be paid upfront at closing.
  • Insured mortgages are capped at purchase prices below $1,500,000.

Understanding CMHC Mortgage Insurance in Canada

In Canada, if your down payment is less than 20% of the purchase price, you are required by law to purchase mortgage default insurance. Commonly called "CMHC insurance" after the Canada Mortgage and Housing Corporation, this insurance protects the lender — not you — in case you default on your mortgage. It's one of the key costs that buyers with smaller down payments need to account for.

Mortgage insurance premiums are calculated as a percentage of your mortgage amount, based on your loan-to-value (LTV) ratio. The premium can be paid upfront or, as most buyers choose, added directly to your mortgage balance. While it increases your total borrowing cost, mortgage insurance is what makes it possible for Canadians to buy a home with as little as 5% down.

How It Works

Enter your home's purchase price and your down payment amount. The calculator determines your loan-to-value ratio and applies the corresponding CMHC premium rate to your mortgage amount. It shows the insurance premium, your total mortgage balance (including the premium), and the impact on your monthly payments.

The premium rates increase as your down payment decreases, reflecting the higher risk to the insurer. The calculator also factors in applicable provincial sales tax on the insurance premium, which applies in some provinces and must be paid upfront (it cannot be added to the mortgage). Use this calculator to understand the true cost of a smaller down payment versus saving for 20% to avoid insurance entirely.

How Down Payment Size Affects Your Premium

The CMHC premium rate is directly tied to your loan-to-value (LTV) ratio — the lower your down payment, the higher the premium rate. With a 5% down payment (95% LTV), the premium is 4.00% of the mortgage amount. At 10% down (90% LTV), it drops to 3.10%, and at 15% down (85% LTV), it falls to 2.80%.

On a $500,000 home with 5% down ($25,000), the mortgage insurance premium is $19,000 (4% of $475,000), bringing your total mortgage to $494,000. The same home with 10% down ($50,000) has a premium of $13,950 (3.10% of $450,000). That extra $25,000 in down payment saves you $5,050 in insurance premiums — plus interest on the difference over the full amortization. Saving toward a higher down payment can pay off significantly.

Provincial Sales Tax on Insurance Premiums

In provinces that charge provincial sales tax (PST) on insurance premiums, you must pay this tax upfront at closing — it cannot be rolled into the mortgage. Ontario charges 8% PST on CMHC premiums, Quebec charges 9% QST, and Manitoba charges 7% RST.

For a $19,000 CMHC premium on a home in Ontario, the PST would be $1,520 due at closing on top of your down payment and other closing costs. This is an often-overlooked expense that can catch first-time buyers off guard. Alberta, British Columbia, and Saskatchewan do not charge provincial sales tax on mortgage insurance premiums.

Key Facts

  • Mortgage default insurance is required for all mortgages with less than 20% down payment at federally regulated lenders.
  • The premium is based on the loan-to-value (LTV) ratio — higher LTV means a higher premium rate, ranging from 2.8% to 4% of the mortgage amount.
  • The insurance premium can be added to your mortgage balance and paid off over the amortization period.
  • Provincial sales tax on the premium (where applicable) must be paid upfront at closing — it cannot be rolled into the mortgage.
  • Three insurers operate in Canada: CMHC (a Crown corporation), Sagen (formerly Genworth), and Canada Guaranty. Premium rates are similar across all three.
  • Insured mortgages are capped at a purchase price below $1,500,000. First-time buyers and buyers of new builds can access 30-year amortization; otherwise, insured mortgages are limited to 25 years.
  • You may be able to port or transfer your existing mortgage insurance to a new property if you move, potentially avoiding a new premium.

FAQ

How much does CMHC insurance cost?

The premium is a percentage of your mortgage amount, determined by your loan-to-value ratio. For example, with a 5% down payment (95% LTV), the premium is 4% of the mortgage. With 10% down (90% LTV), it drops to 3.10%, and with 15% down (85% LTV), it's 2.80%. Use the calculator above to see the exact premium for your situation. These rates are set by CMHC and are subject to change.

Who does mortgage insurance protect?

Mortgage default insurance protects the lender, not the borrower. If you default on your mortgage, the insurer reimburses the lender for their losses. Even though you pay the premium, you don't receive any benefit from a claim. The insurance exists to encourage lenders to offer mortgages with smaller down payments, which they would otherwise consider too risky.

Can I avoid paying CMHC insurance?

The primary way to avoid mortgage insurance is to make a down payment of 20% or more. Some credit unions and alternative lenders that are not federally regulated may offer uninsured mortgages with lower down payments, but these typically come with higher interest rates. Another option is to receive a gifted down payment from an immediate family member to reach the 20% threshold.

Is the CMHC premium refundable if I sell or pay off my mortgage early?

No, the mortgage insurance premium is not refundable. Once paid, it's a sunk cost regardless of whether you sell the property, pay off the mortgage early, or refinance. If you refinance and your new mortgage still has a loan-to-value ratio above 80%, you may need to pay a new insurance premium on the increased amount.

What is the maximum purchase price for an insured mortgage?

Mortgage default insurance is available for properties with a purchase price below $1,500,000. For homes at $1,500,000 or above, you must make a minimum 20% down payment and cannot obtain mortgage insurance. For homes between $500,000 and $1,499,999, the minimum down payment is 5% on the first $500,000 and 10% on the remainder.

Updated March 2026. Information on this page is provided for educational purposes only. Tax rules, rates, and government programs may change — verify details with the CRA or a qualified financial advisor.