The answer depends on which product you mean. Mortgage default insurance is usually a one-time premium based on your down payment and mortgage amount. Mortgage life insurance is optional coverage with a recurring premium based on the borrowers and the insured mortgage.
For an insured home purchase, mortgage default insurance can range from about 0.60% to 4.50% of the mortgage amount, with 4.00% commonly applying when the down payment is between 5% and 9.99%. Optional mortgage life insurance does not use one Canada-wide price table; you need a personalized quote.
The default-insurance premium is calculated on the mortgage before the premium is added. Your final borrowing cost can be higher when the premium is financed because interest applies to the added amount.
Canadian borrowers often use “mortgage insurance” for two different products. They protect different parties and are priced differently.
Also called mortgage loan insurance, this protects the lender if the borrower defaults. The premium is based mainly on the mortgage amount and loan-to-value ratio.
This optional coverage may pay the insured mortgage balance to the lender after an approved death claim. Cost depends on the insured borrowers and policy terms.
The premium rate rises as the down payment gets smaller. The lender applies the relevant percentage to the mortgage amount before the insurance premium is added.
Owner-occupied properties with one to four units. Product conditions and insurer pricing can change.
| Loan-to-value ratio | Approximate down payment | Premium rate |
|---|---|---|
| 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% |
| 90.01%–95% with a non-traditional down payment | Product-specific | 4.50% |
The premium percentage is not higher simply because a home is in Toronto, Vancouver, Calgary, Halifax, or Winnipeg. The dollar cost changes because local purchase prices and mortgage amounts can be very different.
These examples are not market averages or quotes. They assume an eligible owner-occupied purchase, standard down-payment funds, a 25-year amortization, and no premium discounts, surcharges, provincial tax, interest, legal fees, land-transfer tax, or other closing costs.
Optional mortgage life insurance is priced differently from mortgage default insurance. A bank, credit union, or insurer may calculate the recurring premium using the insured mortgage amount, borrower ages, smoking status, number of insured borrowers, and the coverage selected.
The lowest monthly premium is not automatically the best value. Review who owns the coverage, who receives the benefit, whether the benefit decreases, when medical information is assessed, and what happens if you refinance or switch lenders.
A useful estimate starts with the purchase structure or current mortgage—not a generic national average. Gather the information below before using a calculator or requesting a quote.
For default insurance, the loan-to-value ratio determines the applicable premium tier.
First-time buyer, new-build, owner-occupied, rental, and longer-amortization rules can affect eligibility or cost.
Prepare ages, smoking status, mortgage amount, existing coverage, dependants, and the desired protection period.
Include financed premiums, interest, applicable tax, benefit changes, portability, and cancellation terms.
Move from a general cost estimate to a calculator, provincial guide, product comparison, or personalized quote.
Review the factors that can affect insurance premiums and total borrowing cost.
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Request a quoteInsurance premiums, eligibility criteria, lender practices, and provincial taxes can change. Use official information and read the policy or certificate before accepting coverage.
Confirm the purchase price, minimum down payment, mortgage amount, premium rate, applicable tax, amortization, and whether the premium will be financed.
Check the official CMHC calculatorConfirm the charge, benefit amount, beneficiary, exclusions, underwriting, cancellation rights, and whether coverage continues after refinancing or changing lenders.
Read Canadian consumer guidanceDirect answers to the questions Canadian buyers and homeowners commonly ask when estimating insurance costs.
For a standard insured mortgage with a loan-to-value ratio between 90.01% and 95%, the CMHC premium rate is generally 4.00% of the mortgage amount before the premium is added. A $380,000 mortgage would therefore have an estimated premium of $15,200.
Mortgage default insurance is typically required when the down payment is below 20%. A lender may still require insurance in some circumstances, so confirm the requirement for your application and property type.
The mortgage default insurance premium can generally be added to the mortgage. You will then pay interest on the financed premium. Applicable provincial sales tax on the premium must normally be paid upfront and cannot be added to the loan.
The standard premium rate is based mainly on the mortgage loan-to-value ratio, not the city. However, higher purchase prices can create larger mortgages, so the dollar premium may be higher for otherwise similar buyers in more expensive markets.
There is no single monthly price. Premiums can depend on the mortgage balance, borrower age, smoking status, number of insured borrowers, benefit structure, and provider. A personalized quote is needed for a useful estimate.
Not necessarily. With many lender-connected products, the premium generally stays the same even though the outstanding mortgage and potential benefit decline. Review the specific policy or certificate because structures vary.
For mortgage default insurance, use the purchase price, down payment, province, property type, and amortization in an insurer calculator. For mortgage life insurance, request a quote using the mortgage balance and borrower details.
Share the mortgage amount, down payment or current balance, province, timeline, and the type of insurance you are reviewing. A clearer starting point leads to a more useful comparison.
