How much is CMHC insurance on a mortgage?
CMHC insurance costs between 2.8% and 4% of the loan for a buyer with less than 20% down and an amortization of up to 25 years. The exact rate depends on the loan-to-value: the loan divided by the price. A smaller down payment means a higher loan-to-value and a higher rate.
This CMHC calculator works the premium out from the price and the down payment, then goes further than the rate. It shows the total mortgage once the premium is added, the provincial sales tax that has to be paid in cash at closing, and what the premium adds to the monthly payment at the mortgage rate entered. A table then repeats the calculation at 5%, 10%, 15% and 20% down, so the cost of each band is visible side by side.
Mortgage default insurance protects the lender, not the buyer. It exists so that a lender can accept a down payment under 20%, and the borrower pays for it.
What are the CMHC premium rates?
CMHC premium rates are set by loan-to-value band, and the premium is the band’s rate multiplied by the loan before insurance. The table below is CMHC’s schedule for an amortization of up to 25 years.
How to read this table: each row is the top of a band, so a loan of 90% of the price uses the 90% row and a loan just above it uses the 95% row. The first three rows cover loans of 80% of the price or less, which do not have to be insured. The second 95% row is CMHC's rate when part of the down payment is borrowed.
| Loan is up to this share of the price | Premium, as a share of the loan |
|---|---|
| 65% | 0.6% |
| 75% | 1.7% |
| 80% | 2.4% |
| 85% | 2.8% |
| 90% | 3.1% |
| 95% | 4% |
| 95% | 4.5% |
Source: Mortgage loan insurance premiums (homeowner and small rental loans) — CMHC; Mortgage loan insurance premiums — CMHC (portability surcharge and provincial sales tax); Mortgage loan insurance premiums — CMHC (Refinance schedule note); CMHC Mortgage Loan Insurance cost (consumer page) — CMHC; CMHC Purchase — product page (25-year maximum amortization, premium schedule); CMHC Home Start — product page (30-year amortization premium schedule); CMHC Home Start — eligibility (first-time buyer or newly built; high-ratio only); CMHC Revises Homeowner Mortgage Loan Insurance Premiums (notice, June 5, 2024); Boldest mortgage reforms in decades come into force today (December 15, 2024). In effect from December 15, 2024; checked September 29, 2026.
In down payment terms: 5% to under 10% down is charged 4% of the loan, 10% to under 15% down is charged 3.1%, and 15% to under 20% down is charged 2.8%. The bands have hard edges. On a $400,000 home, a down payment of $40,000 is charged 3.1%, while $39,999 is charged 4% on a loan one dollar larger: $3,240 more for being one dollar short.
What does a 30-year amortization add to the premium?
A 30-year insured amortization adds 0.2% of the loan to the premium rate in every band. It is available only on a high-ratio mortgage where at least one borrower is a first-time buyer or the home is newly built; the federal government opened it to all first-time buyers and all new-build buyers on December 15, 2024. Other buyers with less than 20% down are limited to 25 years, and the calculator prices their premium on 25 years with a note.
How to read this table: same bands as the standard schedule, each 0.2% of the loan higher. The second 95% row is the rate when part of the down payment is borrowed.
| Loan is up to this share of the price | Premium, as a share of the loan |
|---|---|
| 85% | 3% |
| 90% | 3.3% |
| 95% | 4.2% |
| 95% | 4.7% |
Source: Mortgage loan insurance premiums (homeowner and small rental loans) — CMHC; Mortgage loan insurance premiums — CMHC (portability surcharge and provincial sales tax); Mortgage loan insurance premiums — CMHC (Refinance schedule note); CMHC Mortgage Loan Insurance cost (consumer page) — CMHC; CMHC Purchase — product page (25-year maximum amortization, premium schedule); CMHC Home Start — product page (30-year amortization premium schedule); CMHC Home Start — eligibility (first-time buyer or newly built; high-ratio only); CMHC Revises Homeowner Mortgage Loan Insurance Premiums (notice, June 5, 2024); Boldest mortgage reforms in decades come into force today (December 15, 2024). In effect from December 15, 2024; checked September 29, 2026.
On a $540,000 loan at 90% loan-to-value, that surcharge is $1,080: a premium of $17,820 instead of $16,740. The longer amortization lowers the monthly payment, which is the trade the calculator’s amortization table lays out.
Which provinces charge sales tax on the CMHC premium?
Ontario, Quebec and Saskatchewan charge provincial sales tax on mortgage insurance premiums. The tax is worked out on the premium, not on the home price, and it cannot be added to the mortgage: it is paid in cash when the mortgage closes, alongside legal fees and land transfer tax.
| Province | Tax on the premium | On a $17,100 premium | Paid how |
|---|---|---|---|
| Ontario | 8% | $1,368.00 | Cash at closing |
| Quebec | 9% (9.975% for premiums paid after December 31, 2026) | $1,539.00, rising to $1,705.73 | Cash at closing |
| Saskatchewan | 6% | $1,026.00 | Cash at closing |
| All other provinces and territories | None | $0 | Not applicable |
Manitoba used to tax these premiums and exempted mortgage insurance for contracts taking effect after June 30, 2020. This tax is the item most often missing from a closing budget, because it never appears in the mortgage amount. The land transfer tax calculator covers the other large cash cost at closing.
How do you use this CMHC insurance calculator?
- Enter the home price. Use the purchase price in the agreement.
- Enter the down payment. Choose a percentage of the price or a dollar amount; the calculator converts one to the other.
- Pick the amortization. Choosing 30 years applies the higher schedule when the buyer qualifies for it.
- Choose the buyer situation. First-time buyer, buying a newly built home, or neither. This decides whether 30 years is available.
- Pick the province or territory. This sets the sales tax on the premium.
- Open “Cost of the premium over time”. Enter the mortgage rate quoted by the lender to see what the premium adds to the monthly payment, or switch off adding the premium to the mortgage to see it paid in cash.
The four result cards show the premium, the total mortgage, the cash due at closing for the premium, and the premium’s cost per month.
What does a worked example look like?
Take a first-time buyer in Ontario purchasing a $600,000 home with $60,000 down, a 25-year amortization and a mortgage rate of 4.5%.
| Step | Amount | How it is worked out |
|---|---|---|
| Loan before insurance | $540,000 | price minus down payment |
| Loan-to-value | 90% | top of the 3.1% band |
| CMHC premium | $16,740 | rate times the loan |
| Total mortgage | $556,740 | premium added to the loan |
| Ontario sales tax at closing | $1,339.20 | paid in cash, not borrowed |
| Monthly payment without the premium | $2,988.75 | for comparison only |
| Monthly payment with the premium | $3,081.41 | the real payment |
| Premium cost per month | $92.65 | for 25 years |
| Interest paid on the premium | about $11,055 | if the rate never changed |
Three more cases at different price points, all in Ontario with a 25-year amortization and a rate of 4.5%:
| Home price and down payment | Loan-to-value | Premium rate | CMHC premium | Tax at closing | Premium cost per month |
|---|---|---|---|---|---|
| $450,000 with 5% down | 95% | 4% | $17,100 | $1,368.00 | $94.64 |
| $800,000 with 10% down | 90% | 3.1% | $22,320 | $1,785.60 | $123.54 |
| $1,300,000 with 10% down | 90% | 3.1% | $36,270 | $2,901.60 | $200.74 |
The last row was not possible before December 15, 2024, when the insured price limit was lower. The mortgage calculator takes the total mortgage from here and adds payment frequencies, renewal scenarios and a full schedule.
What is the minimum down payment for an insured mortgage?
The minimum down payment is 5% of the first $500,000 of the price plus 10% of the part above it, and insurance stops at a price of $1,500,000. At that price or higher, the minimum is 20% of the whole price and no premium applies.
How to read this table: the two rates apply to slices of the price, like tax brackets. A price in the second tier pays 5% on the first slice and 10% only on the rest.
| Part of the price from | To | Minimum down payment on that part |
|---|---|---|
| $0 | $500,000 | 5% |
| $500,000 | $1,500,000 | 10% |
Source: How much you need for a down payment — Financial Consumer Agency of Canada; Backgrounder: Delivering the Boldest Mortgage Reforms in Decades (September 24, 2024) — price cap; Backgrounder: Delivering the Boldest Mortgage Reforms in Decades — down payment tiers; Backgrounder: Delivering the Boldest Mortgage Reforms in Decades — 30-year amortization eligibility; Boldest mortgage reforms in decades come into force today (December 15, 2024); Boldest mortgage reforms in decades come into force today — insured switches at renewal; CMHC Purchase — product page (maximum price, amortization, debt service ratios); Minimum qualifying rate for uninsured mortgages — OSFI; OSFI exempts uninsured mortgage straight switches from the prescribed MQR (November 21, 2024); “Straight Switches” and portfolio insurance (backgrounder, December 2024); Calculating GDS / TDS — CMHC; Calculating GDS / TDS — CMHC (qualifying rate for insured loans); Preparing to get a mortgage — Financial Consumer Agency of Canada (stress test); Insurable Housing Loan Regulations (SOR/2012-282), s. 5 high ratio loans — Justice Laws (current to 2026-09-21, CMHC-insured loans); Insurable Housing Loan Regulations (SOR/2012-282), s. 5(1.1) — 30-year amortization; Eligible Mortgage Loan Regulations (SOR/2012-281), s. 5 high ratio loans — Justice Laws (current to 2026-09-21, private insurers with the government guarantee); Canada Gazette Part II, SOR/2025-55 (Regulatory Impact Analysis Statement) — effective dates; Canada Gazette Part II, SOR/2025-55 — 30-year amortization limited to high-ratio loans. In effect from December 16, 2024; checked September 29, 2026.
The table below applies those tiers to example prices and adds two numbers that are not on CMHC’s own calculator: the premium at the bare minimum, and how much more cash it takes to reach 20% and pay no premium at all.
| Home price | Minimum down payment | CMHC premium at the minimum | More cash needed to reach 20% |
|---|---|---|---|
| $300,000 | $15,000 (5%) | $11,400 | $45,000 |
| $500,000 | $25,000 (5%) | $19,000 | $75,000 |
| $600,000 | $35,000 (5.8%) | $22,600 | $85,000 |
| $750,000 | $50,000 (6.7%) | $28,000 | $100,000 |
| $1,000,000 | $75,000 (7.5%) | $37,000 | $125,000 |
| $1,250,000 | $100,000 (8%) | $46,000 | $150,000 |
| $1,500,000 | $300,000 (20%) | Not available | $0 |
Whether a lender will approve the loan is a separate question from the minimum down payment. The mortgage affordability calculator checks income against the stress test and the debt service limits for insured mortgages.
Is it cheaper to pay the premium or to save a bigger down payment?
A bigger down payment is cheaper in premium terms only when it crosses a band edge; inside a band, extra cash lowers the loan but not the rate. The table below shows the full cost of the premium on the $600,000 Ontario example over 25 years at 4.5%, counting the interest paid on the premium and the tax at closing.
| Down payment | CMHC premium | Interest on the premium | Ontario tax at closing | Full cost of the premium |
|---|---|---|---|---|
| $35,000 (minimum) | $22,600 | about $14,925 | $1,808.00 | about $39,333 |
| $60,000 (10%) | $16,740 | about $11,055 | $1,339.20 | about $29,134 |
| $90,000 (15%) | $14,280 | about $9,431 | $1,142.40 | about $24,853 |
| $120,000 (20%) | $0 | $0 | $0 | $0 |
Going from $60,000 to $90,000 down takes $30,000 more cash. Saving $1,500 a month, that is 20 months of waiting to cut the premium by $2,460 and the tax by $196.80. Whether that wait pays off depends on things no premium table can show: rent paid in the meantime, where prices and mortgage rates go, and how the savings are held. A first home savings account and the Home Buyers’ Plan are the two registered routes to a larger down payment, and the first-time home buyer rebates calculator adds up the land transfer tax relief and credits that can free cash for one.
How does the maths work?
The calculator follows five steps, in plain English:
- Loan. Price minus down payment. A down payment entered as a percentage is converted to dollars first.
- Checks. If the loan is 80% of the price or less, no insurance is needed. If the price is at or above the insured limit, or the down payment is under the tiered minimum, insurance is not available and the result says what is missing.
- Premium. The loan-to-value picks the band; the band’s rate times the loan is the premium. A 30-year amortization for an eligible buyer uses the higher schedule.
- Tax. The premium times the province’s rate, for the three provinces that tax it. This amount stays out of the mortgage.
- Cost over time. The monthly payment is calculated twice with semi-annual compounding, once on the loan alone and once on the loan plus premium. The difference is the premium’s monthly cost, and that difference times the number of payments, minus the premium, is the interest paid on it.
The Decision Brief under the results also reports the next band edge: how much more down payment lowers the rate, and what that saves.
The same steps reproduce the example published by the Financial Consumer Agency of Canada. On a $400,000 home, 5% down gives a premium of $15,200 and a mortgage of $395,200, and 10% down gives $11,160 and $371,160. Both pairs match the agency’s table to the dollar.
A down payment that lands a few cents short of a band edge is priced in the higher band. The result then describes the loan as “just over” the edge instead of rounding it, so the percentage shown never contradicts the rate charged.
What are the most common mistakes with CMHC insurance?
- Forgetting the sales tax. In Ontario, Quebec and Saskatchewan the tax on the premium is a cash cost at closing. It is not in the mortgage and not in the lender’s payment quote.
- Stopping one dollar short of a band. The rate applies to the whole loan, so landing just under 10% or 15% down costs far more than the missing dollars.
- Treating the premium as the full cost. Once added to the mortgage, the premium collects interest for the whole amortization.
- Assuming 5% down works at any price. Above $500,000 the minimum rises, and at $1,500,000 or more it is 20%.
- Assuming 30 years is open to everyone. With less than 20% down, only first-time buyers and buyers of newly built homes can amortize over 30 years, and it costs a higher premium rate.
- Confusing it with mortgage life insurance. Default insurance covers the lender. It pays nothing to the borrower or the family.
When should you talk to a professional?
A mortgage broker or lender gives the binding number, because the lender chooses the insurer and the insurer sets the final premium from the appraised value. A conversation is worth having when part of the down payment is borrowed or gifted, when the home has three or four units, when income is self-employed or newly Canadian, when an existing insured mortgage is being ported to a new home, or when the purchase is a newly built home with a long closing date. This calculator is an educational estimate, not mortgage advice; the lender’s commitment letter and the statement of adjustments from the lawyer or notary are the final word.