Premiums in Quebec, Ontario and Saskatchewan are subject to provincial sales tax. The provincial sales tax cannot be added to the loan amount.
Costs, qualification requirements, product options, CMHC Eco Plus and more.
Find out if your down payment requires you to get mortgage loan insurance on your new home.
If you want to buy a home with a down payment of less than 20%, you’ll need mortgage loan insurance. This protects your lender in case you can’t make your payments.
CMHC mortgage loan insurance lets you get a mortgage for up to 95% of the purchase price of a home. It also ensures you get a reasonable interest rate, even with your smaller down payment.
Mortgage loan insurance helps stabilize the housing market, too. During economic slumps when down payments may be harder to save, it ensures the availability of mortgage funding.
To get mortgage loan insurance, you’ll need a minimum down payment. The amount depends on the home’s purchase price:
Your lender pays an insurance premium on mortgage loan insurance. It’s calculated as a percentage of the mortgage and is based on the size of your down payment. Your lender will likely pass this cost on to you. You can pay it in a lump sum or add it to your mortgage and include it in your payments.
Calculate your insurance premium with our mortgage loan insurance chart.
Get more details by reading our frequently asked questions about CMHC mortgage loan insurance.
Find out how you could receive up to $50,000 when you buy and sell in Ontario.
Find out which requirements you must meet to qualify for CMHC’s Homeowner Mortgage Loan Insurance.
Closing costs include but are not limited to one-time items such as lawyer fees, GST and PST as applicable, land transfer tax if applicable, adjustments, etc., to allow you to complete the house purchase.
*Please note that other requirements may apply and are subject to change. These ratios serve as guidelines and you may still qualify for a mortgage, even if your GDS and TDS are slightly higher than the industry standards. For details, please contact your lender or mortgage broker.
Find out how you could receive up to $50,000 when you buy and sell in Ontario.
CMHC Mortgage Loan Insurance information and premium rates.
To obtain CMHC Mortgage Loan Insurance, lenders pay an insurance premium. Typically, your lender will pass these costs on to you. Your lender will give you the exact price when you apply for a mortgage.
The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan and is based on the size of your down payment. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums.
Remember: without mortgage insurance you may avoid the insurance premium but you’ll typically pay much higher interest rates and additional administrative fees. At the end of the day, for the vast majority of borrowers, the cost of CMHC Mortgage Loan Insurance is more than fully offset by the savings achieved.
Up to 25% premium refund may be available when CMHC Mortgage Loan Insurance is used to finance an Energy-Efficient Home.
| Loan-to-Value | Premium on Total Loan | Premium on Increase to Loan Amount for Portability |
|---|---|---|
| Up to and including 65% | 0.60% | 0.60% |
| 65.01% to 75% | 1.70% | 5.90% |
| 75.01% to 80% | 2.40% | 6.05% |
| 80.01% to 85% | 2.80% | 6.20% |
| 85.01% to 90% | 3.10% | 6.25% |
| 90.01% to 95% | 4.00% | 6.30% |
Premiums in Quebec, Ontario and Saskatchewan are subject to provincial sales tax. The provincial sales tax cannot be added to the loan amount.
Frequently asked questions about Mortgage Loan Insurance.
A mortgage involves an agreement between a lender and a borrower where the lender decides to loan the borrower money to purchase property under the condition that the borrower promises to repay the loan and provides that land as security for their payment of the loan; when the loan is repaid in full, the lender will release the property to the borrower.
If the borrower defaults on that loan, the lender may take its security (the property) in order to satisfy the debt owing to it. In the event of a default on that loan, the liability may not be fully satisfied by the sale of the property and the borrower may therefore be responsible for the payment of the shortfall. Mortgages are the primary means by which people finance the purchase or their homes.
A CMHC insured mortgage provides you with down payment flexibilities — you can own your home with a minimum down payment starting at 5%.
Some common sources of down payment include personal savings, RRSP withdrawal, non-repayable gift from immediate family members, sale of other property, and funds borrowed against proven assets.
The minimum down payment requirement for mortgage loan insurance depends on the purchase price of the home. For a purchase price of $500,000 or less, the minimum down payment is 5%. When the purchase price is above $500,000, the minimum down payment is 5% for the first $500,000 and 10% for the remaining portion.
Lenders will require mortgage loan insurance if a borrower has a down payment of less than 20% of the purchase price of the home.
Yes, the maximum purchase price or as-improved property value must be below $1,000,000.
Your lender will arrange for the purchase of CMHC Mortgage Loan Insurance. When you negotiate your loan terms make sure to ask that the mortgage be CMHC insured.
To learn more about the different types of mortgages and the process of arranging a mortgage, see our Home buying Step by Step – Step 2. Are You Financially Ready?
No, CMHC offers mortgage loan insurance products on various property types including duplexes, condominiums, manufactured or mobile homes and many more, including rental and retirement homes. Please check with your lender for more details.
Like any other kind of insurance, there are premiums to be paid. The lender typically passes on the cost of insurance to the borrower. The premiums can be paid up front in a lump sum or blended in with your mortgage loan payments.
When a lender has received CMHC Mortgage Loan Insurance on your home loan on or after April 1, 1996 and you are purchasing another home, there may be a mortgage portability option. Portability allows a repeat user of CMHC insured mortgage financing to save money by reducing or eliminating the premium on a new insured loan for the purchase of another home. Please check with your lender for the terms and conditions of mortgage portability.
Find Out How You Could Receive Up To $50,000 When You Buy And Sell In Ontario.
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