See how CMHC mortgage insurance premiums are calculated, what a 5%, 10% or 15% down payment changes, and how the cost can affect a purchase in Toronto, Vancouver, Calgary, Edmonton, Montreal, Ottawa, Halifax and communities across Canada.
For a standard owner-occupied purchase, the CMHC premium is generally 4.00% of the mortgage when the down payment is between 5% and 9.99%, 3.10% with 10% to 14.99% down, and 2.80% with 15% to 19.99% down. The premium can usually be added to the mortgage, but applicable provincial sales tax cannot.
The rate applies to the mortgage amount before the premium is added. A longer eligible amortization can add a 0.20% surcharge.
The premium rate is based mainly on loan-to-value: the mortgage amount divided by the property value. A smaller down payment produces a higher loan-to-value and normally a higher premium rate.
For owner-occupied properties with one to four units. Additional conditions can apply.
| Loan-to-value | Approx. down payment | Base premium |
|---|---|---|
| Up to 65% | 35% or more | 0.60% |
| 65.01%–75% | 25%–34.99% | 1.70% |
| 75.01%–80% | 20%–24.99% | 2.40% |
| 80.01%–85% | 15%–19.99% | 2.80% |
| 85.01%–90% | 10%–14.99% | 3.10% |
| 90.01%–95% | 5%–9.99% | 4.00% |
Enter a purchase price and down payment for an illustrative estimate.
These examples use the federal minimum down payment and a 25-year amortization. They show the base premium before any provincial sales tax or other lender costs.
| Purchase price | Minimum down payment | Base mortgage | Rate | Premium | Mortgage after premium |
|---|---|---|---|---|---|
| $500,000 | $25,000 | $475,000 | 4.00% | $19,000 | $494,000 |
| $650,000 | $40,000 | $610,000 | 4.00% | $24,400 | $634,400 |
| $900,000 | $65,000 | $835,000 | 4.00% | $33,400 | $868,400 |
| $1,250,000 | $100,000 | $1,150,000 | 4.00% | $46,000 | $1,196,000 |
It reduces the amount borrowed and may move the mortgage into a lower premium band. For example, moving from just under 10% down to 10% down can reduce the base premium rate from 4.00% to 3.10%.
CMHC uses a Canada-wide premium schedule, yet purchase prices, property types and provincial tax treatment change what borrowers need to prepare before closing.
A Toronto condo, Hamilton townhouse or Ottawa home priced above $500,000 requires 10% down on the portion above $500,000. Ontario also applies tax to the insurance premium, and that tax generally must be paid rather than added to the mortgage.
Read the Ontario mortgage insurance guideFor a condo or townhome in Vancouver, Burnaby, Richmond, Surrey or Victoria, a purchase below $1.5 million may be eligible for insured financing with less than 20% down. At $1.5 million or more, the minimum down payment is generally 20%.
Read the BC mortgage insurance guideA buyer in Calgary or Edmonton using the minimum down payment can still fall into the 4.00% premium band. The dollar premium is lower than on a more expensive property, but the percentage depends on loan-to-value—not the city.
Read the Alberta mortgage insurance guideCMHC identifies Ontario, Quebec and Saskatchewan as provinces where sales tax applies to the mortgage insurance premium and cannot be added to the loan. Elsewhere, borrowers should still budget separately for legal fees, adjustments and other closing costs.
Review mortgage insurance across Canada
The cheapest-looking down payment is not always the lowest-cost mortgage structure. Compare the immediate cash requirement with the premium added to the loan and the interest paid on that financed premium.
Compare the minimum down payment with 10%, 15% and 20% to see where the premium rate changes.
A longer amortization may lower the payment but can add a 0.20% insurance surcharge and more total interest.
Borrowers with an existing CMHC-insured mortgage may qualify for reduced premium costs when moving, subject to program rules.
CMHC Eco products may provide a partial premium refund for an eligible energy-efficient home or qualifying improvements.
Mortgage default insurance helps the lender if a borrower defaults. It is not a substitute for life insurance, disability coverage or critical illness protection.
Usually required by the lender when an eligible borrower buys with less than 20% down. The premium is based mainly on loan-to-value.
Explore CMHC mortgage insuranceSagen and Canada Guaranty also insure qualifying mortgages. The lender normally selects or submits to the insurer as part of the mortgage approval.
Compare CMHC, Sagen and Canada GuarantyLife or disability coverage is designed for household risk, not lender default risk. Review benefit ownership, beneficiary, exclusions and portability separately.
Review mortgage life insuranceA premium calculation is only one part of the mortgage decision. Confirm the full cost, eligibility and long-term flexibility before removing financing conditions.
Ask for the base mortgage, premium rate, surcharge, financed premium and any tax due at closing.
The lender may use CMHC, Sagen or Canada Guaranty. Ask whether insurer choice affects approval conditions or documentation.
Compare the three insurersKeep the down payment separate from sales tax on the premium, legal fees, land-transfer tax, adjustments and moving costs.
Review common mortgage insurance questionsMortgage rules and insurer products can change. Verify the final numbers with the lender and use current official guidance when making a financial decision.
Official homeowner premium bands, portability rates, surcharges and provincial-tax notes.
View CMHC premium informationMinimum down payment requirements for homes up to $500,000, between $500,000 and $1.5 million, and $1.5 million or more.
View FCAC down payment guidanceOfficial illustrative calculator for purchase price, down payment, amortization and province.
Open the CMHC calculatorDirect answers for buyers comparing down payments, insured mortgage costs and closing requirements in Canada.
A standard mortgage with exactly 5% down has a 95% loan-to-value ratio, which normally falls in the 4.00% base premium band. The premium is calculated on the mortgage amount before the premium is added.
Subtract the down payment from the purchase price to find the base mortgage. Divide that mortgage by the property value to find loan-to-value, select the applicable premium rate, and multiply the base mortgage by that rate.
The insurance premium can usually be added to the mortgage. However, CMHC states that applicable provincial sales tax on the premium cannot be added to the loan and must be handled separately at closing.
CMHC identifies Ontario, Quebec and Saskatchewan as provinces where provincial sales tax applies to the mortgage loan insurance premium. Confirm the current tax amount with the lender or closing professional.
Yes. Where a borrower and property qualify for a 30-year insured amortization, CMHC generally applies a 0.20% premium surcharge. A longer amortization may lower the scheduled payment but can increase the premium and total interest.
Federal guidance states that a home priced at $1.5 million or more generally requires a minimum 20% down payment. The high-ratio insured-mortgage price cap applies to eligible properties priced below $1.5 million.
No. CMHC mortgage loan insurance protects the lender against borrower default. Mortgage life insurance is optional coverage connected to death and is intended to reduce or pay an insured mortgage balance after an approved claim.
Some borrowers may qualify for a portability premium credit when moving an existing CMHC-insured mortgage. Eligible energy-efficient homes or improvements may also qualify for a partial premium refund through CMHC Eco products.
CMHC insurance is arranged through the mortgage lender and protects the lender. After the insured-mortgage cost is clear, compare optional life and disability protection based on the mortgage balance, income, dependants and existing coverage.
