How much does it cost?
The premium is a share of your mortgage, set by your down payment:
| Down payment | Premium (share of the mortgage) |
|---|---|
| 5% to 9.99% | 4.00% |
| 10% to 14.99% | 3.10% |
| 15% to 19.99% | 2.80% |
| 20% or more | Not needed |
Example: a $600,000 home with 10% down. Your mortgage is $540,000, and the premium is 3.10% of that: $16,740. It’s added to your mortgage, so you borrow $556,740 and pay interest on the premium too.
Going from just under 10% down to 10% cuts the premium by $4,862. From 20% down, no insurance is needed. A 0.20% surcharge applies to 30-year amortizations.
Because the rate drops at 10%, 15% and 20%, a small extra amount near those lines can save thousands. On this home, putting down $60,000 instead of $59,940 cuts the premium by $4,862.
The minimum down payment
| Home price | Minimum down payment |
|---|---|
| Up to $500,000 | 5% |
| $500,000 to $1.5 million | 5% of the first $500,000, plus 10% of the rest |
| $1.5 million or more | 20% (insurance isn’t available) |
On an $800,000 home, that’s 5% of $500,000 plus 10% of $300,000: $55,000.
30-year amortizations
Insured mortgages are normally limited to 25 years. First-time buyers and buyers of newly built homes can have 30 years, which lowers each payment. The premium is 0.20% higher for a 30-year amortization: 3.30% instead of 3.10% at 10% down.
Sales tax on the premium
In Ontario (8%), Quebec (9%, rising to 9.975% from January 1, 2027) and Saskatchewan (6%), sales tax is charged on the premium. It can’t be added to your mortgage: you pay it in cash when you close. On a $16,740 premium in Ontario, that’s $1,339.20.
Who provides it?
CMHC (Canada Mortgage and Housing Corporation) is the government insurer. Two private companies, Sagen and Canada Guaranty, offer it too, with similar premiums. Your lender chooses and arranges it; you don’t apply yourself.
The insurance pays the lender if you stop paying your mortgage. It doesn’t cover you: for that, you’d need separate life or disability insurance.
Qualifying
With an insured mortgage, you still need to pass the mortgage stress test, qualifying at a higher rate than the one you’ll pay.
See your own numbers
The CMHC insurance calculator works out the premium and any sales tax for your price, down payment and province. The mortgage calculator adds the CMHC premium to your mortgage and shows your payment for any price and down payment. The affordability calculator shows how much you can borrow.