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CMHC Mortgage Insurance Calculator in Canada
Use our free, easy-to-use tool to estimate your exact mortgage insurance premium in seconds. Simply enter your home price and down payment!
Includes the 0.20% surcharge that CMHC adds for 30-year amortizations.
* Estimate based on standard CMHC premium rates. Your exact premium depends on your lender and may include provincial sales tax.
Want to save money on CMHC insurance?
Skip the lender's pricey add-on insurance and protect your mortgage with a personal term life policy. It's yours to keep, and the payout goes to your family, not the bank.
What is CMHC insurance?
CMHC insurance is the common term for mortgage default insurance provided by the Canada Mortgage and Housing Corporation (CMHC). This insurance is meant to protect mortgage lenders, banks, and other financial institutions when a borrower stops making payments and defaults on their mortgage loan.
CMHC insurance allows Canadians to qualify for lower mortgage rates as the risk of an individual defaulting on the loan is reduced for lenders, even in riskier situations such as with smaller down payments. It allows Canadians to qualify for a mortgage for up to 95% of the purchase price of a home.
Typically mortgage default insurance costs an additional 2.80% to 4.00% of the mortgage amount. However, it allows Canadians who may not otherwise have the opportunity to purchase homes and have access to the Canadian real estate market.
How to calculate your CMHC insurance premium
Understanding how your premium is calculated helps you make informed decisions about your home purchase. The math running behind our calculator is straightforward.
Who needs CMHC insurance?
CMHC mortgage loan insurance is legally required for home buyers who make a down payment of less than 20% of the property’s value. The minimum down payment you need depends on the home’s purchase price.
Homes $500,000 or less
You will need a minimum down payment of 5% of the purchase price.
$500,000 to $1,500,000
You will need 5% on the first $500,000 and 10% on the remaining amount.
Homes $1,500,000 or more
CMHC insurance is not available. Buyers must make a minimum 20% down payment to qualify for a mortgage.
CMHC insurance qualification requirements
To qualify for mortgage default insurance, borrowers must meet the following requirements:
A maximum GDS (Gross Debt Service) ratio of 39%
A maximum TDS (Total Debt Service) ratio of 44%
A credit score of at least 600
An authorized down payment of at least 5% for properties under $500,000
Need insurance answers now?
Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them.
How much does CMHC insurance cost?
Typically, mortgage default insurance costs an additional 2.80% to 4.00% of the total mortgage amount. The premium rate you are charged depends entirely on the percentage of your down payment. The smaller your down payment, the higher the premium rate.
| Down payment % | Insurance Premium Rate |
|---|---|
| 5% to 9.99% | 4.00% |
| 10% – 14.99% | 3.10% |
| 15% – 19.99% | 2.80% |
| 20% – 24.99% | 2.40% (optional) |
Rates shown are standard CMHC premium rates and are for illustration only. Your exact premium depends on your purchase price, down payment, and lender. Use the calculator above for an estimate tailored to your numbers.
Provincial sales tax on your CMHC premium
Provincial sales tax is applied based on the province where the mortgage loan is taken. While the CMHC premium itself can be added to your mortgage, this tax (where it applies) must usually be paid upfront in cash on closing day.
| Province | Sales tax rate on CMHC premium | Paid upfront in cash? | Important details to know |
|---|---|---|---|
| Ontario | 8% (PST portion of HST) | Yes | You must pay this tax in cash to your real estate lawyer on closing day. It cannot be added to your mortgage loan. |
| Alberta | 0% | No tax | Alberta has no provincial sales tax at all, so no tax is applied to your CMHC premium. |
| British Columbia | 0% | No tax | While BC charges 7% PST on many items, insurance premiums (including CMHC) are entirely exempt. |
| Manitoba | 0% | No tax | Manitoba permanently eliminated its 7% Retail Sales Tax (RST) on mortgage default insurance premiums to help with homebuyer affordability. |
CMHC insurance vs lender-added mortgage insurance
When securing a mortgage, you will hear the term “mortgage insurance” used for both CMHC insurance and lender-added mortgage insurance. Borrowers are also often offered lender-added mortgage protection alongside their mortgage. However, this is a different product from CMHC insurance.
1. CMHC insurance
Mortgage default insurance
2. Lender-added
Lender-added mortgage insurance
Why personal term life insurance is often the smarter choice
While lender-added protection sounds convenient, it has a major drawback: declining coverage for the same price. As you pay down your mortgage, the insurance payout decreases, but your premium stays exactly the same. Furthermore, the policy is tied to the lender, so if you switch banks for a better rate at renewal, your coverage usually ends.
A personal term life insurance policy offers a far better alternative:
Level Coverage
Your payout amount stays exactly the same for the entire term, even as your mortgage drops.
You Control the Cash
The tax-free cash payout goes directly to your family (beneficiaries), not the bank. They can use it to pay off the mortgage, cover bills, or handle childcare costs.
Total Portability
The policy stays with you, no matter how many times you change mortgage lenders.
| Feature | CMHC mortgage insurance | Lender-added mortgage protection | Term life insurance Recommended |
|---|---|---|---|
| Purpose | Protects the lender against borrower default | Protects the bank’s mortgage balance | Protects your family’s financial future |
| Is it mandatory? | Yes, if down payment is under 20% | No, completely optional | No, completely optional |
| Who gets the money? | The bank/lender | The bank/lender | Your chosen beneficiaries |
| Payout amount | Covers the lender’s loss | Decreases over time as your mortgage goes down | Stays level for the entire policy term |
| Flexibility | None; tied to mortgage laws | Limited; tied to the lender or loan terms | High; payout can be used for mortgage, debt, income replacement, or other expenses |
Frequently Asked Questions
Is CMHC insurance mandatory?
Yes, in most cases, CMHC mortgage default insurance is required when your down payment is less than 20% of the home’s purchase price. It protects the lender, not the borrower.
How much does CMHC insurance cost?
CMHC insurance typically costs between 2.80% and 4.00% of the mortgage amount, depending on the size of your down payment. A smaller down payment results in a higher premium rate.
Do I pay CMHC insurance upfront?
Usually, no. The premium is added to your mortgage balance and paid off over time. However, buyers in Ontario, Quebec, and Saskatchewan must pay the PST on the premium upfront in cash on closing day.
What is the minimum down payment for CMHC-insured mortgages?
If the home costs $500,000 or less, the minimum down payment is 5%. If the home costs more than $500,000, you need 5% on the first $500,000 and 10% on the remaining portion up to $1.5 million.
Is CMHC insurance the same as lender-added mortgage protection?
No. CMHC insurance is mandatory default insurance that protects the lender. Lender-added mortgage protection is an optional policy sold by banks to pay down your loan balance if you pass away or face an illness.
Is term life insurance a better alternative to lender protection?
For most buyers, yes. Term life insurance offers steady coverage that doesn’t shrink, lower potential rates, and total flexibility because the cash goes directly to your family instead of the bank.
Can I reduce CMHC insurance costs?
Yes. Making a larger down payment drops you into a lower premium tier, which actively reduces the total amount of insurance you owe.
