CMHC mortgage insurance
— premiums, providers,
explained.
CMHC insurance costs 2.80% to 4.00% of your mortgage when you put down less than 20%. With 5% down it is 4.00%: $20,000 on a $500,000 mortgage, usually added to the loan. In Ontario you also pay 8% tax on the premium, in cash, at closing.
How much is CMHC insurance?
Premium as a % of the mortgage. It is usually added to the loan. CMHC, Sagen and Canada Guaranty are Canada's three mortgage insurers.
What do I need to know
about CMHC insurance?
The premium is the cost. The lower insured rate is the saving.
Required under 20% down
Less than 20% down means your mortgage must be insured by CMHC, Sagen or Canada Guaranty. It protects the lender, and the premium is usually added to the loan.
Insured rates often run the lowest
Insurance removes the lender's risk, so insured mortgages often get the lowest rates. The rate savings can offset part of the premium.
Premium scales with your down payment
4.00% at 5% down, 2.80% at 15% down, none at 20%. More down means a smaller premium.
Watch the PST — it’s not financed
Ontario, Quebec and Saskatchewan tax the premium, and you pay that tax in cash at closing. On a $20,000 premium in Ontario that is $1,600.
How do we set up
an insured mortgage?
Model the options, shop the rate, close with every number shown.
Tell us your price and down payment
A five-minute intake, no credit check to start. We see if you are insured, insurable or conventional.
We model all three paths
We compare rate, premium, premium tax and total interest, including your cash to close.
Approve, close, and track
Your lawyer gets every closing cost up front: premium, tax, land transfer and legal fees. No surprises.
What if my situation
is different?
Tap any situation below to see how we approach it.
If you’re…You’re buying with the minimum 5% down
You’re buying with the minimum 5% down
At 95% loan-to-value the premium is 4.00% of your mortgage, but insured rates are often the lowest. We show the net cost so you know if more down saves money.
Calculate my premiumIf you’re…You’re weighing 5% down vs. 10% down
You’re weighing 5% down vs. 10% down
Going from 5% to 10% down cuts the premium from 4.00% to 3.10%. We check if that saving beats keeping the cash.
Model my optionsIf you’re…You’re a first-time buyer with FHSA or RRSP funds
You’re a first-time buyer with FHSA or RRSP funds
FHSA and RRSP Home Buyers’ Plan money can go toward your down payment. We find the down payment size with the lowest total cost.
See first-time programsIf you’re…You’re buying a new build and want a 30-year amortization
You’re buying a new build and want a 30-year amortization
Since December 15, 2024, new builds can get a 30-year insured amortization. We compare the lower payment with the extra interest.
Start my pre-approvalIf you’re…Your purchase is near the $1.5M price cap
Your purchase is near the $1.5M price cap
Insurance is only available under $1.5M. At $1.5M or more you need at least 20% down. We find conventional and private options at that price.
Explore my optionsIf you’re…You’re buying in Ontario and budgeting cash-to-close
You’re buying in Ontario and budgeting cash-to-close
Ontario's 8% tax on the premium is due in cash at closing. On a $20,000 premium that is $1,600. We map every closing cost before you make an offer.
Map my closing costsHow much is the premium
in dollars?
Premium is financed into your mortgage. The PST on it is not — it’s cash at closing in ON, QC, and SK.
| LTV (down payment) | Premium rate | On $600K mortgage | ON PST (8%, cash) |
|---|---|---|---|
90.01–95% 5–9.99% down | 4.00% | $24,000 | $1,920 |
85.01–90% 10–14.99% down | 3.10% | $18,600 | $1,488 |
80.01–85% 15–19.99% down | 2.80% | $16,800 | $1,344 |
≤80% 20%+ down | 0% | $0 | $0 |
Rates per CMHC. PST amounts illustrative at 8% (Ontario). Your rate, premium, and PST will differ. Try the CMHC calculator.
Common questions,
clear answers.
Premium rates, PST, the three insurers, and insured vs. conventional — answered plainly.
What is CMHC mortgage insurance?
Default insurance required on any Canadian mortgage with less than 20% down. It protects the lender (not you) if you default, and in exchange you get access to the lowest insured rates. Three insurers provide it: CMHC, Sagen, and Canada Guaranty.
Is CMHC insurance the same as mortgage protection (life) insurance?
No — they’re completely different. CMHC default insurance (this page) is mandatory with less than 20% down and protects the lender if you default. Mortgage protection insurance is optional life, critical illness, or disability coverage that pays down your mortgage if you die or can’t work — it protects your family, and it’s never required to get a mortgage. Comparing that kind of coverage? See mortgage life insurance vs term life.
How much is the CMHC premium?
A percentage of the loan based on loan-to-value: 4.00% at 95% LTV, 3.10% at 90%, 2.80% at 85%, and 0% at 20%+ down. On a $500,000 mortgage at 95% LTV that’s a $20,000 premium — almost always financed into the mortgage. Rates per CMHC; the 30-year amortization for first-time buyers and new builds, and the under-$1.5M price cap, have applied since December 15, 2024 (Finance Canada). Use our CMHC calculator.
CMHC vs Sagen vs Canada Guaranty — what’s the difference?
Pricing is nearly identical across all three. Your lender chooses the insurer, and you generally won’t notice a difference. CMHC is the federal Crown corporation; Sagen (formerly Genworth) and Canada Guaranty are private insurers.
Insured vs insurable vs conventional?
Insured: under 20% down, you pay the premium, lowest rates. Insurable: 20%+ down, but the lender insures the loan in bulk to lower its cost and may pass you a small discount. Conventional/uninsured: 20%+ down, no insurance, slightly higher rate.
Is there PST on the CMHC premium?
Yes in Ontario, Quebec and Saskatchewan (CMHC), 8% of the premium in Ontario, and it’s not financed: you pay it in cash at closing. On a $20,000 premium in Ontario that’s an extra $1,600 due on closing day.
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Mortgage brokers across Ontario
CMHC-insured mortgages are available from lenders across Ontario — find a Mortgage Squad advisor in your city.