CMHC Insurance Calculator
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CMHC Insurance Rates
| Down Payment | Premium Rate |
|---|---|
| 5% - 9.99% | 4.00% |
| 10% - 14.99% | 3.10% |
| 15% - 19.99% | 2.80% |
| 20%+ | No insurance required |
CMHC Insurance — Frequently Asked Questions
What is CMHC mortgage insurance?
CMHC (Canada Mortgage and Housing Corporation) mortgage insurance — also called mortgage default insurance — is required when you put less than 20% down on a home in Canada. It protects the lender if you stop making payments. The premium is added to your mortgage and paid off over the amortization period.
When is CMHC insurance required in Canada?
CMHC insurance is mandatory for any home purchase with a down payment of less than 20% on a purchase price under $1,000,000. Homes priced at $1,000,000 or more require a minimum 20% down payment and are not eligible for CMHC insurance, regardless of down payment size.
What are the CMHC insurance premium rates in Canada?
CMHC premiums for 2025 are: 4.00% of the insured mortgage for a down payment of 5–9.99%, 3.10% for 10–14.99%, and 2.80% for 15–19.99%. The premium is calculated on the loan amount (purchase price minus down payment), not the full purchase price.
How do I avoid CMHC mortgage insurance?
The only way to avoid CMHC insurance in Canada is to make a down payment of 20% or more. At current Toronto prices, that means $160,000–$200,000 on a typical home. Some buyers use gifted down payments, RRSP withdrawals (up to $35,000 under the First Home Savings Account or Home Buyers' Plan), or a co-signer to reach the 20% threshold.
Can the CMHC insurance premium be added to my mortgage?
Yes. CMHC premiums are typically added to the principal balance of your mortgage and amortized over the same period. For example, a $24,000 CMHC premium on a $600,000 mortgage raises your total loan to $624,000. You pay a small amount of PST/HST on the premium at closing (in Ontario, that's 8%).
Does CMHC insurance protect me as a homebuyer?
No — CMHC insurance protects the lender, not you. However, it enables lenders to offer lower interest rates on insured mortgages, which can partially offset the premium cost. As a buyer, you pay the premium but the policy only pays out if you default and the lender loses money on a foreclosure sale.
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