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CMHC Mortgage Insurance Calculator for Canada

If you are buying a home in Canada with less than a 20% down payment, you are required to purchase mortgage default insurance. Use this calculator to estimate the premium cost and any applicable Provincial Sales Tax (PST).

Minimum required: $0
Enter the home price and down payment to see the required insurance premium.

How this CMHC Insurance Calculator works

This calculator determines the mandatory mortgage default insurance premium based on the loan-to-value ratio of your purchase.

Minimum Down Payment: It first checks if your down payment meets the federal minimum (5% on the first $500k, 10% on the remainder up to $1.5M).

Premium Rates: It applies the standard CMHC premium rates:

  • 4.00% for down payments between 5% and 9.99%.
  • 3.10% for down payments between 10% and 14.99%.
  • 2.80% for down payments between 15% and 19.99%.
PST: If you are purchasing in Ontario, Quebec, or Saskatchewan, Provincial Sales Tax is calculated on the insurance premium. This tax cannot be added to your mortgage and must be paid in cash at closing.

CMHC Mortgage Insurance: Frequently Asked Questions

1. What is CMHC mortgage insurance and why do I need it?

CMHC mortgage loan insurance (also called mortgage default insurance) protects the lender, not the borrower, if you stop making your mortgage payments. In exchange, it lets you buy a home with a smaller down payment (as low as 5%) and still qualify for a mortgage at competitive interest rates.

2. When is CMHC mortgage insurance required?

You generally need CMHC mortgage insurance when:

  • Your down payment is under 20% of the home's purchase price, and
  • The home price is $1.5 million or less.

If you put 20% or more down, or the purchase price is above the insurable limit, the mortgage is usually uninsured.

3. Does CMHC insurance protect me or the lender?

CMHC insurance protects the lender against losses if you default on your mortgage. It does not cover your payments, your equity, or your credit rating. If you default, the insurer may reimburse the lender and then pursue you for any shortfall.

4. How is the CMHC insurance premium calculated and paid?

The premium is:

  • Calculated as a percentage of your mortgage amount (not the purchase price), based mainly on your loan-to-value (LTV) – the smaller your down payment, the higher the rate.
  • Typically 0.6%-4.5% of the mortgage amount for owner-occupied homes.

Payment options:

  • Most borrowers add the premium to the mortgage and repay it over the amortization period.
  • You can usually choose to pay it in a lump sum at closing instead. Provincial sales tax on the premium (in Ontario, Quebec and Saskatchewan) cannot be added to the mortgage and must be paid upfront.

5. What are the basic qualification requirements (down payment, income, credit)?

Key CMHC guidelines include:

Minimum down payment:
  • 5% on the first $500,000 of the purchase price, and
  • 10% on the portion between $500,000 and $1.5 million.

Credit score: at least 600 for at least one borrower or guarantor.

Debt service ratios:

  • Gross Debt Service (GDS) up to 39%
  • Total Debt Service (TDS) up to 44%, in most cases.

Lenders also apply their own underwriting standards on top of CMHC's rules.

6. Is there a maximum home price or amortization for CMHC-insured mortgages?

Yes:

Maximum purchase price:

  • generally up to $1.5 million for an insured mortgage; homes above that are not eligible.

Maximum amortization:

  • Normally 25 years for insured mortgages.
  • Up to 30 years is now available through CMHC Home Start for first-time homebuyers or buyers of newly built homes who meet specific criteria.

7. How do I get CMHC mortgage insurance?

You don't apply to CMHC directly as a borrower. Instead:

  • You apply for a mortgage with a bank, credit union, or broker.
  • If your down payment is under 20% and you meet the lender's and CMHC's criteria, the lender submits the insurance application to CMHC on your behalf.
  • The approval of your insured mortgage depends on both the lender's decision and the insurer's underwriting rules.

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