CMHC
Canada Mortgage and Housing Corporation
The federal crown corporation that insures high-ratio mortgages (less than 20% down) and runs national housing programs. CMHC sets the rules that govern insured mortgages in Canada.
CMHC is one of three insurers (alongside Sagen and Canada Guaranty); lenders choose which to use, and a broker can shop all three since their rules and premiums differ slightly on edge-case files. The insurance protects the lender, but you pay the premium.
Beyond insurance, CMHC's rules set the boundaries of the insured market: maximum 25-year amortization, purchase price under $1.5M, and the property must be owner-occupied. Step outside those and you're in uninsured (conventional) territory with different pricing.
Insured mortgages usually carry the lowest rates on the market because the lender's risk is covered — which is why a 5–10% down insured purchase can actually beat a 20%-down uninsured one on rate.
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