CMHC Mortgage Insurance Calculator Canada
Estimate your CMHC mortgage insurance premium, mortgage amount after the premium, loan-to-value ratio and potential provincial tax on the insurance premium.
CMHC Mortgage Insurance Calculator
If you are buying a home in Canada with less than 20% down, mortgage default insurance may be required. CMHC mortgage insurance helps protect lenders when borrowers have a higher loan-to-value mortgage.
Use the calculator below to get an estimate of the mortgage insurance premium based on your purchase price, down payment and estimated loan-to-value ratio.
This tool is designed for Canadian homebuyers and provides an estimate only. Your lender or mortgage insurer will determine the actual premium and eligibility.
Calculate Your Estimated CMHC Premium
Your Estimated Results
CMHC Mortgage Insurance Premium Rates
For a standard homeowner purchase, CMHC’s published mortgage insurance premium schedule is based on the loan-to-value ratio.
| Loan-to-Value Ratio | CMHC Premium Rate |
|---|---|
| Up to and including 65% | 0.60% |
| 65.01% – 75% | 1.70% |
| 75.01% – 80% | 2.40% |
| 80.01% – 85% | 2.80% |
| 85.01% – 90% | 3.10% |
| 90.01% – 95% | 4.00% |
| 90.01% – 95% with non-traditional down payment | 4.50% |
Premium rates and eligibility requirements can change. The calculator is intended to provide an estimate and does not represent an approval or official insurance quote.
How Does CMHC Mortgage Insurance Work?
Mortgage default insurance is generally required when a homebuyer has a down payment of less than 20% on an eligible home purchase. The insurance protects the lender against mortgage default; it does not function as home insurance for the buyer.
The premium is calculated based largely on the loan-to-value ratio. The higher the loan compared with the property’s value, the higher the applicable insurance premium can be.
In many cases, the mortgage insurance premium can be added to the mortgage rather than paid entirely upfront. However, applicable provincial sales tax on the premium generally cannot be added to the mortgage.
CMHC Mortgage Insurance Example
Suppose you purchase a home for $750,000 and make a $60,000 down payment.
Your base mortgage would be approximately $690,000. The down payment is 8%, resulting in an estimated loan-to-value ratio of 92%.
At a 92% loan-to-value ratio, the standard estimated CMHC premium rate is 4.00%.
The estimated premium would therefore be:
$690,000 × 4.00% = $27,600
If the premium is added to the mortgage, the estimated mortgage balance would be approximately $717,600, before any applicable provincial sales tax on the insurance premium.
What Is the Minimum Down Payment in Canada?
For eligible homeowner purchases, the minimum down payment generally works as follows:
- 5% on the first $500,000 of the purchase price.
- 10% on the portion of the purchase price above $500,000 up to the applicable insured-purchase limit.
- Properties priced at $1.5 million or more generally require at least 20% down and are not eligible for standard insured financing.
Your actual minimum down payment can also depend on the property, borrower, lender and applicable mortgage-insurance requirements.
Can You Get CMHC Insurance on a $1.5 Million Home?
Standard insured homeowner purchase financing is generally not available for homes with a purchase price or lending value of $1.5 million or more.
For a home at or above that threshold, a buyer generally needs at least 20% down rather than using standard high-ratio mortgage insurance.
Can You Get a 30-Year Insured Mortgage?
A 30-year amortization may be available for eligible first-time homebuyers or purchasers of newly built homes, subject to the applicable requirements.
The calculator allows you to select 25 or 30 years so you can keep your calculations aligned with your potential mortgage scenario. Selecting 30 years does not mean that you automatically qualify.
Is There Tax on CMHC Mortgage Insurance?
Provincial sales tax may apply to the mortgage insurance premium depending on the province. Where applicable, this tax is generally paid upfront and is not added to the mortgage.
The calculator provides an estimate for selected provinces where provincial sales tax treatment may apply. Always confirm the applicable tax and rate with your lender, insurer or provincial tax authority before closing.
CMHC Mortgage Insurance Calculator FAQ
What is CMHC mortgage insurance?
CMHC mortgage insurance is mortgage default insurance that can protect a lender when a borrower has a high loan-to-value mortgage. It is commonly associated with purchases where the down payment is less than 20%.
How much is CMHC insurance?
The premium depends on the loan-to-value ratio and other applicable requirements. For standard insured purchases, published premium rates range across several LTV bands.
Can I avoid CMHC insurance?
If you have at least 20% down and otherwise qualify for conventional mortgage financing, mortgage default insurance is generally not required.
Can CMHC insurance be added to my mortgage?
In many cases, the mortgage insurance premium can be added to the mortgage. This increases the mortgage balance and therefore can increase the interest paid over the life of the mortgage.
Does CMHC insurance protect the homeowner?
No. Mortgage default insurance primarily protects the lender against losses associated with borrower default. It should not be confused with home insurance.
Is this an official CMHC calculator?
No. This is a MortgageSmartHub educational calculator. It provides an estimate and is not an official CMHC quote or approval tool.
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Important Information
MortgageSmartHub calculators are educational tools designed to help Canadians understand potential mortgage costs. They do not provide mortgage approval, financial advice, tax advice, legal advice or an official insurance quote.
Mortgage rates, insurance premiums, taxes, qualification rules and lending requirements can change. Always verify your numbers with a qualified mortgage professional, lender or the applicable government or insurance provider before making a financial decision.