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CMHC Mortgage Insurance Explained | Canada 2026

Updated

CMHC Insurance Premiums

Premium Table

Down Payment Premium (% of Mortgage)
5.00% 4.00%
5.01-9.99% 3.10%
10.00-14.99% 2.80%
15.00-19.99% 2.40%
20.00%+ Not required

Premium Examples

Home Price Down Payment Mortgage Premium Rate Premium $ Total Mortgage
$400,000 $20,000 (5%) $380,000 4.00% $15,200 $395,200
$500,000 $25,000 (5%) $475,000 4.00% $19,000 $494,000
$500,000 $50,000 (10%) $450,000 2.80% $12,600 $462,600
$500,000 $75,000 (15%) $425,000 2.40% $10,200 $435,200
$500,000 $100,000 (20%) $400,000 0% $0 $400,000
$800,000 $80,000 (10%) $720,000 2.80% $20,160 $740,160
$1,000,000 $200,000 (20%) $800,000 0% $0 $800,000

How CMHC Insurance Works

Aspect Details
Who pays The borrower (you)
Who benefits The lender (bank)
When required Down payment under 20%
How paid Added to mortgage balance (or lump sum)
Tax deductible ❌ No (on primary residence)
Refundable ❌ No (not refundable)
Transferable ✅ Can be ported to a new property
Providers CMHC, Sagen, Canada Guaranty

Who Provides Mortgage Insurance

Provider Market Share Notes
CMHC ~50% Government-owned corporation
Sagen (formerly Genworth) ~30% Private, publicly traded
Canada Guaranty ~20% Private

All three use the same premium schedule. Your lender chooses the provider.

Down Payment Rules in Canada

Home Price Minimum Down Payment
Up to $500,000 5%
$500,001-$999,999 5% on first $500K + 10% on remainder
$1,000,000+ 20% minimum (no insured mortgages available)

Down Payment Examples

Home Price Minimum Down Payment Amount
$400,000 5% $20,000
$500,000 5% $25,000
$600,000 5% + 10% on $100K $35,000
$750,000 5% + 10% on $250K $50,000
$999,999 5% + 10% on $499K $74,999
$1,000,000 20% $200,000

Impact on Monthly Payments

$500,000 home, 25-year amortization, 4.5% rate:

Down Payment Mortgage CMHC Total Mortgage Monthly Payment
5% ($25K) $475,000 $19,000 $494,000 $2,720
10% ($50K) $450,000 $12,600 $462,600 $2,547
15% ($75K) $425,000 $10,200 $435,200 $2,396
20% ($100K) $400,000 $0 $400,000 $2,203

Difference between 5% and 20% down:

  • Monthly: $517/month more
  • Over 25 years: ~$155,000 more in payments (incl. CMHC premium + higher mortgage interest)

5% Down vs Saving to 20% Down

Factor Buy Now (5% Down) Wait for 20%
Buy sooner ✅ Yes ❌ Years of saving
CMHC premium $15-20K $0
Monthly payment Higher Lower
Home equity from appreciation ✅ Building now ❌ Waiting
Opportunity cost If prices rise, you benefit If prices drop, you benefit

Key insight: If home prices rise 3-5%/year, waiting costs more than the CMHC premium in most markets.

CMHC Eligibility Rules

Rule Requirement
Maximum amortization 25 years (insured mortgages, increasing to 30 for first-time buyers)
Maximum home price $1,499,999 (for insured mortgages as of 2025 changes)
Debt ratios GDS ≤ 39%, TDS ≤ 44%
Minimum credit score 600+
Property type Owner-occupied, 1-4 units
Stress test Qualify at higher of contract rate + 2% or minimum qualifying rate