How is it calculated?
Default insurance is required with less than 20% down. The premium is a percentage of the loan, set by loan-to-value, and is added to your mortgage. A 30-year amortization adds 0.20%. In Ontario, Quebec and Saskatchewan, provincial sales tax on the premium is paid at closing.
| Loan-to-value | Premium |
|---|---|
| Up to 65% | 0.60% |
| 65.01%–75% | 1.70% |
| 75.01%–80% | 2.40% |
| 80.01%–85% | 2.80% |
| 85.01%–90% | 3.10% |
| 90.01%–95% | 4.00% |
Purchase premiums for standard down payments. Source: CMHC.
What should I do with the result?
Use it to set a budget or a target rate, then let brokers and lenders bid on your actual mortgage. Bids include rate, penalty method, prepayment and fees, so you can compare the full cost.
Licensed mortgage brokers bid alongside banks, credit unions and private lenders on MortgageBids.ca. One broker bid can tap dozens of lenders, and on most prime mortgages the lender pays the broker, not you. Why use a mortgage broker · Get broker and lender bids
Frequently asked questions
Can I avoid CMHC insurance?
Put 20% or more down.
Is the CMHC premium refundable?
No, but it can be portable if you move your mortgage to a new home.
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