CMHC insurance calculator
Put down less than 20% and your mortgage needs default insurance. Enter the price and down payment to see the premium, which is added to your mortgage, and the 8% Ontario sales tax on it, which you pay in cash at closing. Insurance is only available on homes priced below $1.5 million.
CMHC insurance premiumAdded to the mortgage
$18,135
3.1% of a $585,000 loan, 90% loan-to-value.
- Mortgage before insurance
- $585,000
- Premium, added to the loan
- $18,135
- Total mortgage
- $603,135
- Ontario sales tax on the premium (8%), cash at closing
- $1,451
The rules, in four numbers
What decides your premium
- Insured price cap
- $1,500,000
- Insurance is only available on homes priced below it. At or above it you need 20% down.
- Premium at the minimum down
- 4%
- Of the loan, for the highest loan-to-value band. More down moves you into a cheaper band.
- Longer amortization
- +0.2%
- Added to the rate for a 30-year insured amortization.
- Sales tax on the premium
- 8%
- Ontario charges it on the premium. It is paid in cash at closing and cannot go on the mortgage.
| Down payment | Loan-to-value | Premium |
|---|---|---|
| 5% to 9.99% | 90.01% to 95% | 4% |
| 10% to 14.99%Your purchase | 85.01% to 90% | 3.1% |
| 15% to 19.99% | 80.01% to 85% | 2.8% |
| 20% or more | 80% or less | None required |
Good to know
The rules behind the numbers
Estimates for planning, not advice, a quote or an approval. Your lender, your lawyer and CMHC or your insurer confirm the final figures. Rates and rules change.
CMHC premiums, as a share of the loan: 0.60% up to 65% loan-to-value, 1.70% to 75%, 2.40% to 80%, 2.80% to 85%, 3.10% to 90% and 4.00% to 95% (4.50% at 90.01% to 95% with a non-traditional down payment).
Choosing a 30-year amortization as a first-time buyer, or on a newly built home, adds 0.20% to the premium rate.
Your lender arranges the insurance and tells you the final premium.
Questions buyers ask us
Is the premium paid up front?
Usually not. The premium is added to your mortgage and paid off with it. The Ontario sales tax on the premium is different: it cannot be added to the mortgage and is paid at closing.
Do I need insurance with 20% down?
No. At 20% or more down you have a conventional mortgage and no default insurance is required.
What is the premium on a $400,000 home with 5% down?
With $20,000 down the loan is $380,000, a 95% loan-to-value, so the premium is 4.00%: $15,200, added to the mortgage. The 8% Ontario sales tax on it, $1,216, is paid in cash at closing.
Can I insure a mortgage on a home priced at $1.5 million or more?
No. Mortgage default insurance is only available on homes priced below $1.5 million, so at $1.5 million or more you need at least 20% down and a conventional mortgage.
Numbers are the start. We can help with the rest.
Talk to us before you shop. We can point you to local mortgage professionals, explain what a home like the one you want costs to run, and set up alerts in your price range.