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Mortgage Squad Advisors
Mortgage insurance

CMHC mortgage insurance, explained.

Buying with less than 20% down means default insurance from CMHC, Sagen, or Canada Guaranty. Here are the premium tiers, the differences between the three insurers, and the provincial PST that catches buyers at closing.

CMHC premium tiers (2026)

Loan-to-value (down payment)
Premium (% of loan)
Up to 95% (5–9.99% down)
4.00%
90–94.99% (10–14.99% down)
3.10%
85–89.99% (15–19.99% down)
2.80%
80% or less (20%+ down)
0% (uninsured)

Premium is added to your mortgage and amortized (you don’t pay it upfront) — but the PST on the premium is due in cash at closing in ON/QC/SK/MB.

6 things to know about CMHC mortgage insurance

Why the premium can save you money — and the costs to budget for.

1

Required under 20% down

Any Canadian mortgage with less than 20% down must be insured (CMHC, Sagen, or Canada Guaranty). The premium protects the lender, not you — and is almost always financed into the mortgage.

2

Insured rates are often the lowest

Counter-intuitively, insured mortgages frequently get the sharpest rates because the insurance removes the lender's risk — so the premium can be more than offset by rate savings.

3

Premium scales with your down payment

The rate runs from 4.00% at 5% down to 2.80% at 15% down, and disappears at 20%. A bigger down payment cuts the premium at each band — model both in the calculator.

4

Watch the PST at closing

Ontario, Quebec, Saskatchewan, and Manitoba charge PST on the premium — and that PST is NOT financed; you pay it in cash at closing. On a $20K premium in Ontario that's ~$1,600.

5

Price caps and amortization

Insurance is only available under $1.5M purchase price; 30-year amortization is allowed for first-time buyers and new builds. Above $1.5M you need 20%+ down.

6

Insured vs insurable vs conventional

Insured (you pay the premium, lowest rate), insurable (lender self-insures, ~15-25 bps cheaper than conventional), conventional (20%+ down, no insurance). We model which is cheapest all-in.

Why structure your insured mortgage with us

  • Insured vs insurable vs conventional modelled for the lowest all-in cost.
  • Insured pricing shopped across 100+ lenders — often the lowest rate available.
  • Full cash-to-close mapped — premium, PST, land transfer, and closing costs.
  • FSRA #13737 · no bureau pull to start · best-rate guarantee or $500.
FSRA #13737 · Mortgage Squad Advisors · Best-rate guarantee or $500.

CMHC mortgage insurance — FAQ

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.
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. Use our CMHC calculator.
CMHC vs Sagen vs Canada Guaranty — what's the difference?
Pricing is nearly identical across all three — your lender chooses which insurer to use, 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 bulk-insures to lower its cost — passing you a small discount. Conventional/uninsured: 20%+ down, no insurance, slightly higher rate.
Is there PST on the CMHC premium?
Yes in Ontario, Quebec, Saskatchewan, and Manitoba — typically 8% of the premium, 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.

See your exact premium + all-in cost.

We model insured vs. insurable vs. conventional so you pick the lowest all-in cost — not just the lowest rate.