Confirm the down-payment source
Savings, a qualifying gift, sale proceeds, or another source may require different documentation. Ask the lender what evidence must be available before funding.
Estimate the mortgage default insurance premium on a Canadian home purchase, see the minimum down payment, account for provincial premium tax, understand how the premium changes the mortgage amount, and optionally estimate a monthly principal-and-interest payment.
A home priced below $1.5 million will generally require mortgage default insurance when the down payment is under 20%. The premium is based on the mortgage amount and loan-to-value ratio. It usually can be added to the mortgage, but applicable provincial tax on the premium must be paid upfront.
Enter the purchase details below. The sample starts with a $750,000 home and a $60,000 down payment; replace those figures with the property you are considering.
Results update when you submit the form or change a field.
This estimate excludes land transfer or registration taxes, legal fees, appraisal or inspection costs, property-tax adjustments, and other closing expenses.
The calculator first checks whether your down payment meets the federal minimum. It then calculates the mortgage before insurance, determines the loan-to-value ratio, and applies the relevant standard premium rate.
The premium can usually be added to the mortgage. In Ontario, Quebec, and Saskatchewan, tax on the premium is shown separately because that tax generally cannot be financed as part of the insured loan.
For homes up to $500,000, the minimum is generally 5%. Between $500,000 and below $1.5 million, it is 5% on the first $500,000 and 10% on the remainder.
A smaller down payment creates a higher loan-to-value ratio and normally a higher borrower-paid insurance premium rate.
The premium may be added to the mortgage, while applicable provincial premium tax and other closing costs require separate cash planning.
These standard owner-occupied one- or two-unit purchase rates explain the main calculator result. A 30-year insured amortization adds 0.20 percentage points and is limited to eligible first-time buyers or purchases of newly built homes.
| Down payment | Approximate LTV | 25-year premium rate | Eligible 30-year rate | What it means |
|---|---|---|---|---|
| 5% to 9.99% | 90.01% to 95% | 4.00% | 4.20% | The highest standard high-ratio premium band shown in this calculator. |
| 10% to 14.99% | 85.01% to 90% | 3.10% | 3.30% | A larger down payment lowers both the mortgage and premium rate. |
| 15% to 19.99% | 80.01% to 85% | 2.80% | 3.00% | The lowest standard borrower-paid high-ratio band before reaching 20% down. |
| 20% or more | 80% or less | Not normally required | Not normally required | A conventional mortgage generally does not require borrower-paid mortgage default insurance. |
Standard rates can differ for non-traditional down payments, portability, refinancing, rental properties, and specialized CMHC programs. Confirm the insurer and exact premium with your lender.
The estimate can prepare the conversation, but the lender and mortgage insurer determine final eligibility, premium treatment, and the amount of cash required to close.
Savings, a qualifying gift, sale proceeds, or another source may require different documentation. Ask the lender what evidence must be available before funding.
Occupancy, number of units, new-build status, appraisal, condition, location, and year-round access can affect insurer and lender eligibility.
Keep the down payment and premium tax separate from legal fees, transfer or registration taxes, adjustments, moving costs, immediate repairs, and an emergency reserve.
The federal premium structure is Canada-wide, but provincial premium tax and local closing-cost pressure change how much cash a buyer should keep available before closing.
Buyers in Toronto, Ottawa, Hamilton, Kitchener-Waterloo, and elsewhere in Ontario should plan for 8% tax on the mortgage insurance premium. The calculator keeps that tax outside the financed mortgage amount. Land transfer tax, legal adjustments, condo fees, and Toronto municipal land transfer tax are separate from this estimate.
Explore Ontario mortgage insuranceIn Vancouver, Surrey, Victoria, Kelowna, and other BC markets, provincial sales tax is not added to the premium in this estimate. Buyers should still budget separately for property transfer tax, legal costs, strata-related expenses, and any GST or developer adjustments that apply to a new home.
Explore BC mortgage insuranceCalgary, Edmonton, Red Deer, and other Alberta buyers do not have provincial sales tax added to the premium in this calculator. The same federal LTV and premium bands still apply, while land-title registration, legal fees, condo costs, tax adjustments, and new-build adjustments remain outside the estimate.
Explore Alberta mortgage insuranceBuyers in Montréal, Québec City, Laval, Gatineau, and elsewhere in Quebec should plan for 9% tax on the mortgage insurance premium. This is tax on the insurance premium rather than QST on the home price.
Regina, Saskatoon, Prince Albert, and other Saskatchewan buyers should plan for 6% provincial sales tax on the mortgage insurance premium, payable separately from the financed premium.
In any Canadian market, a purchase price of $1.5 million or more falls outside the standard high-ratio insured-mortgage limit used by this calculator and generally requires at least 20% down.
Review mortgage insurance in CanadaThe word “insurance” appears in both products, but the beneficiary, purpose, and buying process are different.
This lender protection helps qualified borrowers purchase with less than 20% down. The lender arranges it through CMHC or another approved mortgage insurer.
This is optional borrower-related coverage that may pay an insured mortgage balance after an approved death claim. It should be compared with personal term life insurance.
Move from a rough premium estimate to insurer comparisons, Canada-wide guidance, common questions, or a separate mortgage protection conversation.
Understand eligibility, lender involvement, what the insurance protects, and what the premium does not cover.
Read the CMHC guideCompare Canada’s main mortgage default insurance providers and understand why the lender may select the insurer.
Compare mortgage insurersReview when mortgage default insurance is required, how lender protection differs from optional borrower coverage, and what the premium means.
View the mortgage insurance guideFind direct answers about eligibility, premiums, beneficiaries, switching lenders, and related mortgage protection questions.
View all FAQsThis calculator is an independent educational tool. It uses the down-payment and premium assumptions described on this page; the lender and mortgage insurer control the final transaction.
Use the official Government of Canada guidance to confirm the general minimum down-payment structure that applies to the purchase price.
Read the official guidancePublished CMHC premium information explains how standard premium bands change with loan-to-value and eligible insured-amortization options.
Review CMHC premium informationMortgage life and other optional loan-insurance products are separate from mortgage default insurance and should be reviewed through their own disclosure and consent process.
Review borrower rightsThese answers cover the calculation questions Canadian homebuyers most often need resolved before speaking with a lender or making an offer.
The standard premium is calculated by multiplying the mortgage amount before insurance by the premium rate associated with the loan-to-value ratio. For example, a 4.00% rate on a $690,000 mortgage produces an estimated premium of $27,600.
For a home priced at $500,000 or less, the general minimum is 5%. For a home above $500,000 and below $1.5 million, it is 5% of the first $500,000 plus 10% of the amount above $500,000. Homes priced at $1.5 million or more generally require at least 20% down.
The mortgage insurance premium is commonly added to the mortgage amount, although a borrower may pay it separately. Provincial tax on the premium in Ontario, Quebec, and Saskatchewan generally cannot be added to the mortgage and should be budgeted as an upfront closing cost.
Borrower-paid mortgage default insurance is generally not required when the down payment is 20% or more. A lender may still insure a conventional mortgage through a different arrangement, but that is not the high-ratio premium estimated by this calculator.
Up to 30 years may be available when at least one borrower is a first-time homebuyer or when the property is newly built, subject to lender and insurer eligibility. CMHC’s standard Home Start premium rates are 0.20 percentage points above the comparable 25-year high-ratio rates.
No. It estimates the minimum down payment, mortgage default insurance premium, applicable provincial premium tax, and mortgage after the premium. Land transfer or registration taxes, legal costs, inspection, appraisal, title insurance, adjustments, and moving expenses are separate.
Using the minimum-down-payment structure described on this page, the first $500,000 requires $25,000 and the remaining $250,000 requires $25,000, for a general minimum of $50,000. Final eligibility still depends on the lender, insurer, borrower, property, and complete application.
No. This is an independent educational estimate based on published federal down-payment rules and standard CMHC premium rates. Confirm your result with your mortgage lender and the official CMHC premium calculator before making a financial decision.
Your lender will arrange required mortgage default insurance as part of the mortgage application. If you are also comparing protection for death, disability, critical illness, or household income risk, treat that as a separate coverage decision.
