CMHC Mortgage Insurance Calculator
Find out exactly how much CMHC mortgage default insurance will be added to your mortgage when your down payment is under 20%.
What Is CMHC Mortgage Insurance?
CMHC mortgage default insurance (also called high-ratio mortgage insurance) is required by Canadian law for any home purchase where the down payment is less than 20% of the purchase price. The insurance is provided by CMHC (Canada Mortgage and Housing Corporation), as well as private insurers Sagen and Canada Guaranty.
The insurance protects the lender, not the borrower — but it allows lenders to offer mortgages at lower interest rates to borrowers with smaller down payments, because the lender's risk is backed by the insurer.
The CMHC premium is calculated as a percentage of the insured mortgage amount and is added directly to your mortgage balance. You pay it off over the life of the mortgage as part of your regular payments. However, any provincial sales tax (PST) on the premium must be paid upfront at closing in Ontario, Quebec, Manitoba, and Saskatchewan.
CMHC Premium Rate Table
| Down Payment | Premium Rate | On $500K Mortgage |
|---|---|---|
| 5%–9.99% | 4.00% | $20,000 |
| 10%–14.99% | 3.10% | $15,500 |
| 15%–19.99% | 2.80% | $14,000 |
| 20%+ | No premium | $0 |
Common Questions
Who pays CMHC mortgage insurance?
The borrower pays the premium, which is added to the mortgage balance. However, it protects the lender in case of default.
Is CMHC insurance the same as home insurance?
No. CMHC mortgage insurance protects your lender from default risk. Home insurance (property insurance) protects you from property damage, theft, and liability. Both are separate and you need both.
Can I avoid CMHC insurance?
Yes — by putting 20% or more down. For a $700K home, that means a minimum $140,000 down payment. Some buyers put 19.9% down and pay a large premium; saving that extra 0.1% to reach 20% eliminates the insurance entirely.
Is CMHC insurance refundable?
No. Once the premium is added to your mortgage, it is not refunded if you sell the property or pay off the mortgage early.