ExamPassCMHC Mortgage Insurance Premium Calculator
Mortgage default insurance is required when a buyer puts down less than 20%. The premium is a one-time charge on the loan amount, not the price, at a rate set by the loan-to-value: 4.00% of the loan at 90.01% to 95%, 3.10% at 85.01% to 90%, and 2.80% at 80.01% to 85% on CMHC's published schedule. The home must cost less than $1.5 million, and the minimum down payment is 5% of the first $500,000 and 10% of the rest. Enter a price and down payment to check all of it.
For a one- or two-unit owner-occupied home. Three- and four-unit homes need at least 10% down and are not covered here.
Enter a price and down payment to check the minimum down, the premium and the insured mortgage.
How does the calculator work?
- Minimum down payment. For a one- or two-unit home: 5% of the first $500,000 of the price (or lending value, if lower) and 10% of the portion above $500,000. At $1.5 million or more, insurance is not available and the minimum is 20%. Three- and four-unit homes need 10%.
- Loan-to-value. Loan ÷ price. The premium rate depends on the band the loan falls in.
- Premium. Loan × the rate for its band. Most buyers add the premium to the mortgage.
- Sales tax. In Ontario, provincial sales tax applies to the premium. It is paid on closing and cannot be added to the loan. Your lender or lawyer gives you the figure.
- Amortization. Insured mortgages are limited to 25 years, or 30 years through CMHC Home Start when at least one borrower is a first-time homebuyer or the home is newly built and has never been lived in.
| Loan-to-value | CMHC premium on the loan |
|---|---|
| Up to and including 65% | 0.60% |
| 65.01% to 75% | 1.70% |
| 75.01% to 80% | 2.40% |
| 80.01% to 85% | 2.80% |
| 85.01% to 90% | 3.10% |
| 90.01% to 95% | 4.00% |
| 90.01% to 95%, borrowed (non-traditional) down payment | 4.50% |
Loans at 80% or less are usually conventional and need no insurance unless the lender requires it, so the lower bands are shown for completeness.
Worked example: a first home in Hamilton
Aisha buys a townhouse in Hamilton for $650,000 with $40,000 down from her savings.
| Step | Working | Result |
|---|---|---|
| Minimum down payment | 5% × $500,000 + 10% × $150,000 | $40,000.00 |
| Loan | $650,000 − $40,000 | $610,000.00 |
| Loan-to-value | $610,000 ÷ $650,000 | 93.85% |
| Premium rate | 90.01% to 95% band | 4.00% |
| Premium | $610,000 × 4.00% | $24,400.00 |
| Insured mortgage | $610,000 + $24,400 | $634,400.00 |
Had Aisha put down only 5% of the price ($32,500), the purchase would not qualify: the 10% rule on the portion above $500,000 sets her minimum at $40,000. As a first-time buyer, she can ask about a 30-year amortization.
Frequently asked questions
Who does mortgage default insurance protect?
The lender. It repays the lender if the borrower defaults, which is why lenders accept down payments as low as 5%. The borrower pays for it, and it is not refunded if the home later rises in value.
Is the premium charged on the price or the loan?
On the loan. Applying the rate to the price overstates the premium, and it is a favourite wrong answer on the exam.
Do Sagen and Canada Guaranty charge the same premiums?
They set their own rates and rules. This calculator uses CMHC's published homeowner schedule. The lender chooses the insurer and confirms the exact premium.