CMHC Mortgage Insurance Calculator 2025 – Canada Updated Feb 2026
Calculate Your CMHC Mortgage Insurance Premium
Find out exactly how much mortgage default insurance will cost for your Canadian home purchase.
Calculate CMHC PremiumKey Takeaways
- Required for down payments under 20%: CMHC insurance is mandatory for high-ratio mortgages
- Premium rates range from 0.60% to 4.00%: Based on your loan-to-value (LTV) ratio
- Added to your mortgage: You don't pay upfront—it's added to your principal
- PST applies in some provinces: Ontario and Quebec charge provincial sales tax on the premium
- Protects the lender, not you: This is lender insurance, not homeowner protection
In Canada, if you're buying a home with less than 20% down payment, you are required to purchase mortgage default insurance, commonly known as CMHC insurance. This protects lenders if you default on your mortgage. Our CMHC calculator helps you understand exactly how much this insurance will cost and how it affects your monthly payments and total borrowing costs.
What Is CMHC Mortgage Insurance?
Canada Mortgage and Housing Corporation (CMHC) mortgage insurance, also called mortgage default insurance, is a mandatory requirement for Canadian homebuyers who make a down payment of less than 20% of the purchase price. This insurance protects mortgage lenders against losses if a borrower defaults on their loan.
Why Is CMHC Insurance Required?
The Canadian government requires mortgage insurance for high-ratio mortgages (those with less than 20% down) to:
- Protect the Canadian housing market and financial system
- Enable more Canadians to buy homes with smaller down payments
- Reduce risk to lenders, allowing them to offer competitive rates
- Ensure stability in the mortgage lending industry
Three Mortgage Insurance Providers in Canada
- CMHC (Canada Mortgage and Housing Corporation): Federal Crown corporation, most common provider
- Sagen (formerly Genworth Canada): Private insurer, identical rates to CMHC
- Canada Guaranty: Private insurer, also offers identical rates
Your lender will choose which insurer to use, but the cost to you is identical regardless of provider.
CMHC Premium Rates for 2025
CMHC premium rates are determined by your loan-to-value (LTV) ratio—the amount you borrow compared to the home's value. The smaller your down payment, the higher the insurance premium.
| Down Payment | LTV Ratio | Premium Rate | On $500,000 Home |
|---|---|---|---|
| 5% - 9.99% | 90.01% - 95% | 4.00% | $19,000 (on $475,000 loan) |
| 10% - 14.99% | 85.01% - 90% | 3.10% | $13,950 (on $450,000 loan) |
| 15% - 19.99% | 80.01% - 85% | 2.80% | $11,900 (on $425,000 loan) |
| 20% or more | 80% or less | 0.00% | No insurance required |
Example: $475,000 mortgage x 4.00% = $19,000 premium
How to Calculate Your CMHC Premium
Step 1: Determine Your Down Payment Percentage
Calculate what percentage of the purchase price you're putting down:
Step 2: Calculate Your Mortgage Amount
Step 3: Apply the Premium Rate
Use the rate from the table above based on your down payment percentage:
Step 4: Calculate Total Mortgage with Premium
Understanding Down Payment Requirements
Minimum Down Payment Rules in Canada
| Home Price | Minimum Down Payment |
|---|---|
| $500,000 or less | 5% of purchase price |
| $500,001 to $999,999 | 5% on first $500,000 + 10% on remainder |
| $1,000,000 or more | 20% of purchase price (CMHC not available) |
Warning: $1 Million+ Homes
For homes priced at $1 million or more, CMHC insurance is not available at all. You must have at least 20% down payment, making the minimum down payment $200,000 on a $1 million home.
Using Our CMHC Calculator
Our CMHC calculator helps you:
- Calculate exact CMHC premium for your home purchase
- See how the premium affects your monthly mortgage payment
- Compare costs at different down payment levels
- Understand total borrowing costs over the mortgage term
- Calculate PST where applicable (Ontario 8%, Quebec 9%)
Real Cost Examples
Example 1: First-Time Buyer in Toronto
Scenario: $700,000 condo with 5% down ($35,000)
- Mortgage Amount: $665,000
- CMHC Premium (4.00%): $26,600
- Ontario PST (8%): $2,128
- Total CMHC Cost: $28,728
- Total Mortgage: $691,600 (principal + CMHC)
- Monthly Payment Increase: ~$132/month over 25 years at 5%
Example 2: Moving Up with 15% Down
Scenario: $600,000 home with 15% down ($90,000)
- Mortgage Amount: $510,000
- CMHC Premium (2.80%): $14,280
- Total Mortgage: $524,280
- Monthly Payment Increase: ~$71/month over 25 years at 5%
- Savings vs 5% Down: $12,320 less in CMHC premiums
Strategies to Minimize CMHC Costs
1. Save a Larger Down Payment
Increasing your down payment from 5% to 10% reduces your premium from 4.00% to 3.10%. On a $500,000 home, that's a savings of $4,275.
2. Increase to 20% to Avoid CMHC Entirely
Avoiding CMHC insurance altogether requires a 20% down payment but saves you thousands. Consider:
- Waiting longer to save more
- Buying a less expensive home
- Using RRSP Home Buyers' Plan (up to $35,000 withdrawal)
- Gifted down payments from family (with proper documentation)
3. Consider the RRSP Home Buyers' Plan
First-time buyers can withdraw up to $35,000 from their RRSP ($70,000 for couples) to increase their down payment. This must be repaid over 15 years.
4. Shop for Lower-Priced Homes
Every $10,000 reduction in purchase price saves you approximately $400 in CMHC premiums at the 4% rate.
CMHC Premium Refunds
In some cases, you may be eligible for a CMHC premium refund:
Portability Refund
If you sell your home and port (transfer) your mortgage to a new property, you may receive a partial refund of your CMHC premium when you get new mortgage insurance.
Energy-Efficient Homes
CMHC offers a 25% premium refund for homes that meet specific energy efficiency standards. Requirements include:
- EnerGuide rating of 82 or higher, OR
- ENERGY STAR certification, OR
- Built to specific green building standards
Self-Employed Borrowers and CMHC
Self-employed individuals can qualify for CMHC insurance, but documentation requirements are stricter. You'll typically need:
- 2+ years of tax returns showing consistent income
- Notice of Assessment from CRA
- Business registration documents
- Lenders may use a lower percentage of your stated income to account for business variability
Mortgage Insurance Around the World
Mortgage default insurance (like CMHC in Canada) exists in various forms across major housing markets. Here is how they compare:
| Country | Program | Required When | Premium Rate | Key Notes |
|---|---|---|---|---|
| Canada | CMHC / Sagen / Canada Guaranty | Down payment under 20% | 0.60%–4.00% | Three approved insurers; premium added to mortgage; provincial sales tax (PST/QST) on premium not added to mortgage; max purchase price $1.5M (2024) |
| United States | PMI (Private Mortgage Insurance) | Down payment under 20% | 0.5%–1.5% p.a. | Paid as ongoing monthly premium (not added to loan); can be canceled once 20% equity reached; FHA loans have MIP (upfront 1.75% + annual 0.55%) |
| United Kingdom | No equivalent; higher rates for high LTV | N/A (no mandatory insurance) | N/A | Lenders charge higher interest rates for high loan-to-value mortgages; some specialist insurance products exist but not mandatory; Help to Buy equity loan was an alternative |
| Australia | LMI (Lender's Mortgage Insurance) | LVR above 80% | 0.5%–3.0% once-off | Protects lender, not borrower; premium added to loan; First Home Guarantee allows 5% down with government backing and no LMI; APRA regulates |
| India | PMAY credit-linked subsidy (not insurance) | Not mandatory | N/A | No equivalent mandatory mortgage insurance; PMAY provides interest subsidy for EWS/LIG buyers; credit guarantee schemes exist for affordable housing segment |
| Germany | Residenzschuldversicherung (optional) | Voluntary | Varies | No mandatory mortgage insurance; lenders require 20–30% down payment so high LTV lending rare; building savings contracts (Bausparverträge) common for down payment accumulation |
Program details are approximate and subject to change. Always verify current requirements with a licensed mortgage professional.
Frequently Asked Questions
The "Tax Trap": Hidden Cash Requirement
Many buyers forget that in Ontario (8% PST), Quebec (9% QST), and Saskatchewan (6% PST), you must pay sales tax on the CMHC premium.
Crucial Rule: This tax cannot be added to your mortgage. You must pay it in cash at closing.
Example: A $20,000 premium in Ontario requires an extra $1,600 cheque on closing day.
Money Saving Secret: Mortgage Portability
If you move to a new home, you don't have to pay the full CMHC premium again!
You can "port" your existing insurance to the new property. You only pay a "top-up" premium on the new money you borrow. Always ask your lender about portability before breaking your mortgage.
Trusted Resources
For more information about CMHC mortgage insurance, consult these authoritative sources:
- CMHC Official Website - Canada Mortgage and Housing Corporation
- Sagen (Genworth Canada) - Private mortgage insurer
- Canada Guaranty - Private mortgage insurer
About This Calculator
Created by: CalculatorZone Financial Team
Content Reviewed: January 2025
Last Updated: February 21, 2026
This calculator uses current CMHC premium rates effective 2025. Rates are set by CMHC and apply equally across all three mortgage insurance providers in Canada (CMHC, Sagen, and Canada Guaranty). Provincial sales tax rates for Ontario (8%) and Quebec (9%) are included where applicable.
This calculator provides estimates for educational purposes only. CMHC premiums are set by the Canada Mortgage and Housing Corporation and are subject to change. Actual mortgage qualification depends on credit score, income verification, debt ratios, and lender underwriting criteria. Consult a mortgage broker or lender for exact figures.
Calculate Your CMHC Premium Today
See exactly how much mortgage default insurance will cost for your Canadian home purchase.
Calculate Now