Sometimes—but not simply because you sell, refinance, increase your equity, or pay off the mortgage. Your answer depends on which insurance product you have and whether you qualify for a specific refund, premium credit, or cancellation right.
A mortgage default-insurance premium is generally a one-time cost and is not automatically returned after closing. However, eligible CMHC borrowers may qualify for an energy-efficiency refund or a portability premium credit. Optional mortgage life or disability coverage follows the cancellation and refund terms in its own certificate or policy.
Canadian borrowers use the same phrase for different products. Identifying the product first prevents a misleading refund answer.
This protects the lender and is commonly required for an eligible home purchase with less than 20% down. The lender usually arranges it through CMHC, Sagen, or Canada Guaranty and passes the premium cost to the borrower.
This optional coverage may pay the lender or help with mortgage payments after an insured death, disability, illness, or other covered event. Premiums are often charged monthly with the mortgage payment.
A personal life policy is separate from the mortgage. It usually pays the beneficiary you name and follows its own rescission, cancellation, surrender-value, and premium-refund provisions.
These are the main situations worth checking. Eligibility, deadlines, documentation, and the amount available depend on the insurer and policy.
An eligible newly built energy-efficient home financed with CMHC mortgage loan insurance may qualify for a 25% refund of the mortgage loan insurance premium.
If you sell and buy another home using CMHC-insured financing, portability may reduce or eliminate part of the premium on the new insured loan.
Life policies commonly provide a short free-look or rescission period. If you cancel within the applicable period, premiums paid may be returned.
Optional mortgage protection can generally be cancelled, but whether any unused or unearned charge is returned depends on the agreement, billing method, cancellation date, and provider.
Your mortgage statement may show that a premium was added to the loan, but it may not identify every refund or portability rule. Start with the commitment, insurance certificate, closing documents, and any optional-coverage agreement.
Do not rely only on the word “CMHC.” Your mortgage may be insured by another provider, and lender-connected life or disability coverage may be underwritten by a separate insurance company.
Look for CMHC, Sagen, Canada Guaranty, mortgage life insurance, creditor insurance, disability insurance, or a personal policy number.
Note the original closing date, policy start date, sale or refinance date, new purchase date, and any cancellation request date.
Request the rule applied, the calculation, the deadline, the documents required, and the expected payment or credit method.
Use this as a starting point—not a substitute for the insurer’s current program rules or your policy certificate.
| Your situation | Typical outcome | Best next contact |
|---|---|---|
| You sell the home and do not buy another insured property | Usually no automatic refund The original default-insurance premium generally is not returned simply because the insured mortgage ends. |
Your lender can confirm the insurer and whether an unusual program or correction applies. |
| You sell and buy another home soon afterward | Possible portability savings A premium credit may reduce the cost of insurance on the new mortgage if timing and eligibility rules are met. |
Ask the new lender or mortgage broker to submit the portability request before the new mortgage closes. |
| You purchased an eligible energy-efficient new home | Possible partial refund CMHC Eco Plus may return 25% of the eligible mortgage loan insurance premium. |
Confirm the mortgage is CMHC-insured, then follow the CMHC application process. |
| Your equity later rises above 20% | Usually no automatic refund The premium was based on the insured loan at closing; later equity growth or principal repayment normally does not reverse that charge. |
Ask the insurer through your lender if a correction—not ordinary appreciation—affected the original calculation. |
| You cancel optional mortgage life or disability coverage | Future charges may stop Past premiums are not necessarily refunded. A free-look period or unearned-charge rule may apply. |
The lender’s insurance department or the insurer named in the certificate. |
| You refinance or switch lenders | Product-specific Default-insurance portability and optional-coverage continuation are separate questions. |
Speak with both the new mortgage lender and the current insurance provider before discharge. |
A premium credit is not always a cash refund. It may reduce the premium charged on a new insured mortgage rather than send money back to you.
Federal mortgage-insurance programs create a common framework, but provincial taxes, local home prices, relocation timing, and closing logistics change what borrowers need to verify.
CMHC currently identifies Ontario as a province where sales tax applies to the mortgage loan insurance premium. That tax cannot be added to the mortgage, so buyers should account for it in closing funds even when the insurance premium itself is financed.
Ontario mortgage insurance guideIn higher-priced BC markets, borrowers who sell and repurchase quickly should ask about portability before the next offer becomes firm. The insured purchase-price limit and the new loan structure can affect whether the next mortgage qualifies.
British Columbia mortgage guideAlberta buyers purchasing an eligible energy-efficient new build should confirm the insurer and energy documentation early. Builder marketing language alone is not enough to establish CMHC Eco Plus eligibility.
Alberta mortgage insurance guideCMHC currently lists Quebec and Saskatchewan, along with Ontario, as jurisdictions where provincial sales tax applies to the premium and cannot be added to the mortgage loan.
Review mortgage insurance pricingA Vancouver-to-Calgary, Toronto-to-Ottawa, or interprovincial move can create tight sale and purchase timelines. Ask the new lender about portability before closing the old mortgage or finalizing new financing.
Get mortgage insurance supportProperty type, year-round access, intended occupancy, water or septic systems, and lender availability may affect the new insured mortgage. Confirm eligibility before assuming an old premium can be transferred.
Review common mortgage questionsRefund and portability programs can change. Use this guide to identify the right question, then verify the current eligibility rules, deadlines, and required documents with the insurer or policy provider.
This page does not provide legal, tax, lending, or insurance advice. Your mortgage agreement, insurance certificate, policy wording, and insurer’s current program rules control.
Move from general refund information to the product, price, calculation, or quote path that matches your mortgage.
Understand mortgage default insurance, lender protection, premiums, and borrower costs.
Review the factors that can affect mortgage-insurance and protection costs.
Find help identifying the product, insurer, documents, and next question.
Read direct answers about mortgage insurance, life coverage, applications, and claims.
Estimate a mortgage loan insurance premium using the loan and down-payment structure.
Review optional lender-connected life coverage and how it differs from default insurance.
Prepare to compare personal and lender-connected mortgage protection options.
Share your mortgage, timeline, and coverage needs for a more relevant conversation.
Direct answers for Canadian homeowners, buyers, refinancers, and borrowers cancelling optional mortgage protection.
Selling the home does not normally create an automatic cash refund of the mortgage loan insurance premium. If you buy another home using eligible CMHC-insured financing, portability may reduce or eliminate part of the premium on the new insured mortgage.
Eligible borrowers who purchase or build a qualifying energy-efficient home may receive a 25% refund through CMHC Eco Plus. CMHC requires an application and supporting energy documentation, and currently states that applications must be submitted within two years of mortgage closing.
Usually not. Mortgage default insurance is arranged based on the loan and down payment at closing. Paying down the mortgage or gaining equity later generally does not reverse the original premium.
No. A portability premium credit usually reduces the insurance premium payable on a new insured mortgage. It is not necessarily paid to you as cash.
Cancellation normally stops coverage and future premiums according to the policy terms. A refund may apply during a free-look period or where the agreement provides for an unused or unearned charge, but past premiums are not automatically returned.
Refinancing does not automatically refund the original premium. Mortgage default-insurance rules, lender requirements, and optional mortgage-protection coverage must be reviewed separately before the existing loan is discharged.
Ask your lender or mortgage broker and review the original commitment, disclosure documents, and closing package. The insurer may be CMHC, Sagen, or Canada Guaranty. Optional life or disability coverage may name a different insurance company.
The lender arranging the new insured mortgage usually handles the insurance application. Tell the lender or broker about the existing insured mortgage early and ask them to confirm the portability request, timing, and premium-credit calculation before closing.
Share the insurance provider, mortgage closing date, current mortgage event, and the notice or policy language you are reviewing. That context makes it easier to identify whether you are dealing with a refund, a premium credit, a cancellation, or no available recovery.
