CMHC Insurance Calculator Canada 2026

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

FAQ

How much does CMHC insurance cost?

The premium is a percentage of your mortgage amount, determined by your loan-to-value ratio. With a 5% down payment (95% LTV) the premium is 4% of the mortgage; at 10% down it drops to 3.10%, and at 15% down it's 2.80%. The premium can be added to your mortgage balance, but provincial sales tax on the premium (8% PST in Ontario, 9% QST in Quebec, 7% RST in Manitoba) must be paid upfront at closing. 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 is to make a down payment of 20% or more — mortgage default insurance is required by law for down payments under 20% at federally regulated lenders. 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 a gifted down payment from an immediate family member to reach the 20% threshold.

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 — at or above that, 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. First-time buyers and buyers of new builds can access 30-year amortization; otherwise, insured mortgages are limited to 25 years.

How does this calculator work?

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, showing the insurance premium, your total mortgage balance including the premium, and the impact on your monthly payments. It also factors in applicable provincial sales tax on the premium, which must be paid upfront and cannot be added to the mortgage.