CMHC mortgage insurance: premiums and rules
With less than 20% down, Canadian mortgages need default insurance from CMHC, Sagen or Canada Guaranty. The premium is 4.00% of the loan with 5% to 9.99% down, 3.10% with 10% to 14.99%, and 2.80% with 15% to 19.99%, plus 0.20 percentage points for 30 years. On a $500,000 home with 5% down that's $19,000, usually added to the mortgage.
Worked examples use 4.12%, the Bank of Canada's average effective rate on new insured 5-year-plus fixed mortgages (2026-08), and are recalculated whenever our rules or rates are updated.
The short answer
If your down payment is less than 20% of the price, your mortgage must have mortgage default insurance, often called CMHC insurance. You pay a one-time premium of 0.60% to 4.00% of the loan, depending on how much you put down. It is usually added to your mortgage. A surcharge of 0.20 percentage points applies to amortizations over 25 years, and Ontario, Quebec and Saskatchewan charge sales tax on the premium, payable in cash.
On a $500,000 home with the minimum 5% down, the premium is 4.00% of $475,000: $19,000, for a total mortgage of $494,000.
What mortgage default insurance is
Mortgage default insurance protects the lender, not you, if you stop making payments. In exchange, lenders can offer mortgages with less than 20% down, and the federal government sets the rules those mortgages must meet. Those rules include the stress test, maximum GDS and TDS ratios of 39% and 44%, and a minimum credit score of 600 for at least one borrower.
You, the borrower, pay the premium. You can add it to the mortgage or pay it as a lump sum up front. Most people add it, which means they pay interest on it too. You don't choose the insurer: your lender does. There are three:
- CMHC (Canada Mortgage and Housing Corporation), the federal Crown corporation.
- Sagen, a private insurer whose published standard premium table matches CMHC's.
- Canada Guaranty, a private insurer with its own published chart, including the same 30-year surcharge.
All three use 39% and 44% as their maximum debt ratios. "CMHC insurance" is used loosely for all of them. For the basics on when you need it, see insured vs uninsured mortgages.
CMHC premium rates
The premium is a percentage of the loan, based on your loan-to-value ratio (LTV): the mortgage divided by the price. Less down means a higher LTV and a higher rate.
| Loan-to-value | Down payment | Premium (up to 25 years) | Premium (30 years) |
|---|---|---|---|
| Up to 65% | 35% or more | 0.60% | Not available |
| 65.01% to 75% | 25% to 34.99% | 1.70% | Not available |
| 75.01% to 80% | 20% to 24.99% | 2.40% | Not available |
| 80.01% to 85% | 15% to 19.99% | 2.80% | 3.00% |
| 85.01% to 90% | 10% to 14.99% | 3.10% | 3.30% |
| 90.01% to 95% | 5% to 9.99% | 4.00% | 4.20% |
| 90.01% to 95%, non-traditional down payment | 5% to 9.99%, borrowed | 4.50% | 4.70% |
Most buyers with less than 20% down fall in the three rows above 80% LTV. The rows at 80% LTV and below apply when a mortgage with 20% or more down is insured, which is less common. A non-traditional down payment means borrowed money, such as an unsecured personal loan or line of credit; see the down payment rules.
Worked examples
A $500,000 home in Ontario at a 4.12% rate over 25 years:
| Down payment | Loan before premium | Premium rate | Premium | Total mortgage | Ontario tax (cash) | Monthly payment |
|---|---|---|---|---|---|---|
| $25,000 (5%) | $475,000 | 4.00% | $19,000 | $494,000 | $1,520 | $2,631 |
| $50,000 (10%) | $450,000 | 3.10% | $13,950 | $463,950 | $1,116 | $2,471 |
| $75,000 (15%) | $425,000 | 2.80% | $11,900 | $436,900 | $952 | $2,327 |
| $95,000 (19%) | $405,000 | 2.80% | $11,340 | $416,340 | $907 | $2,217 |
Adding the premium to the mortgage is convenient, but it isn't free. If the rate stayed at 4.12% for all 25 years, the $19,000 premium would cost about $11,355 more in interest. That is an estimate; your rate will change at each renewal.
The premium applies to the whole loan
The rate is charged on the entire mortgage, not just the part above 80%. So crossing a band edge matters. With $49,950 down on $500,000, the LTV is just over 90% and the premium is $18,002. With $50,000 down, it falls to $13,950. That's $4,052 saved for $50 more down.
The premium also counts when you qualify
Because the premium is added to the loan, the lender tests the bigger mortgage. In the 5% down example, the $19,000 premium adds about $123 a month to the payment used in your GDS and TDS ratios at the 6.12% qualifying rate. Our affordability calculator includes it automatically.
The other rules for insured mortgages
Paying the premium isn't the only condition. To be insured, a homeowner mortgage must meet the insurer's rules, which follow the federal ones:
- The purchase price must be below $1,500,000.
- The home must be for the owner to live in, with one to four units.
- The amortization can be up to 25 years, or 30 years for eligible first-time buyers and new builds.
- At least one borrower (or guarantor) needs a credit score of 600 or more at CMHC.
- GDS can be at most 39% and TDS at most 44%, tested at the qualifying rate.
- The down payment must meet the federal minimum.
The insurer reviews both you and the property, so an insured mortgage has two approvals to clear: the lender's and the insurer's.
The 30-year amortization surcharge
Insured mortgages are limited to 25 years, except through CMHC's Home Start rules (and the matching products at Sagen and Canada Guaranty). Since December 15, 2024, a 30-year amortization is available when the LTV is above 80% and either at least one borrower is a first-time buyer or the home is newly built and not previously lived in. CMHC treats you as a first-time buyer if you have never bought a home in Canada, have not lived in a home you or your spouse owned in the current year or the four years before it, or have recently separated.
The premium is 0.20 percentage points higher. In the 5% down example, the rate rises from 4.00% to 4.20% and the premium from $19,000 to $19,950. The longer amortization lowers the monthly payment but adds interest over the life of the mortgage. Read more in our guide to the 30-year amortization.
Provincial sales tax on the premium
Three provinces charge sales tax on the premium. CMHC says the tax cannot be added to the loan, so you pay it in cash at closing, usually through your lawyer or notary. Budget for it with your closing costs.
| Province | Rate | Tax payable | Note |
|---|---|---|---|
| Ontario | 8% | $1,520 | Retail sales tax |
| Quebec (until December 31, 2026) | 9% | $1,710 | Tax on insurance premiums |
| Quebec (from January 1, 2027) | 9.975% | $1,895 | Harmonized with the QST rate |
| Saskatchewan | 6% | $1,140 | PST on mortgage default insurance |
Revenu Québec has announced that its tax on insurance premiums will rise to match the QST rate for premiums paid after December 31, 2026. Other provinces do not charge sales tax on the premium.
The $1,500,000 price cap
Insured mortgages are only available when the purchase price is below $1,500,000. The cap was raised from $1 million on December 15, 2024. At $1,500,000 or more, you can't get an insured mortgage, so you need at least 20% down and there is no premium to pay.
The home must also be one to four units and owner-occupied. For three- and four-unit homes the minimum down payment and LTV limits are different; see the down payment rules.
Ways to pay less
- Put down 20% or more. No insurance is required, so no premium. On $500,000 that means $100,000 down.
- Move to a cheaper band. Going from 5% to 10% down on $500,000 cuts the premium from $19,000 to $13,950.
- Choose 25 years if you can. It avoids the 0.20-point surcharge.
- Ask about energy-efficiency refunds. CMHC offers a partial refund of 25% of the premium for buying or building energy-efficient housing. Check CMHC's current conditions.
- Pay the premium in cash if you have the money, to avoid paying interest on it. Weigh that against keeping cash for closing costs and an emergency fund.
Estimate your own premium with the CMHC insurance calculator.
How to calculate your CMHC insurance premium
- Work out the loan. Subtract your down payment from the purchase price.
- Find the loan-to-value. Divide the loan by the price. For example, a 10% down payment is a 90% LTV.
- Look up the premium rate. Find your LTV band in the premium table. Add 0.20 percentage points for an amortization over 25 years.
- Multiply. Multiply the loan by the premium rate to get the premium, and add it to the loan if you're financing it.
- Add sales tax if it applies. In Ontario, Quebec or Saskatchewan, multiply the premium by the provincial rate and budget that amount as cash at closing.
Frequently asked questions
How much is CMHC insurance?
It is a one-time premium of 0.60% to 4.00% of the mortgage, based on your down payment. With the minimum 5% down it is 4.00%. For example, $19,000 on a $475,000 mortgage for a $500,000 home. Amortizations over 25 years add 0.20 percentage points.
Is CMHC insurance paid monthly or upfront?
The premium is charged once, when the mortgage is set up. You can pay it as a lump sum or add it to the mortgage, in which case it is repaid with your monthly payments and you pay interest on it. Any provincial sales tax on it must be paid in cash at closing.
Which provinces charge tax on CMHC insurance?
Ontario (8%), Quebec (9%, rising to 9.975% for premiums paid from January 1, 2027) and Saskatchewan (6%). The tax can't be added to the mortgage.
How can I avoid CMHC insurance?
Put at least 20% down. Homes priced at $1,500,000 or more can't be insured, so they always need at least 20% down.
Who does mortgage default insurance protect?
The lender. It pays the lender if the borrower defaults. The borrower pays the premium, and in return can get a mortgage with less than 20% down.
Primary sources
- CMHC — Mortgage loan insurance for consumers. Checked .
- CMHC — Homeowner mortgage loan insurance: Purchase (eligibility). Checked .
- CMHC — Home Start: 30-year amortization for first-time buyers and new builds. Checked .
- Department of Finance Canada — Mortgage reforms in force: $1.5M insured price cap, 30-year amortization (effective December 15, 2024). Checked .
- Canada Guaranty — Products at a glance (effective July 1, 2025). Checked .
- Government of Ontario — Retail sales tax on insurance premiums. Checked .
- Government of Saskatchewan — PST Bulletin PST-73: Insurance contracts (effective April 1, 2020). Checked .