Find out exactly how much mortgage default insurance you'll pay.
| Down Payment | LTV Ratio | Premium Rate |
|---|---|---|
| 5.00% – 9.99% | 90.01% – 95% | 4.00% |
| 10.00% – 14.99% | 85.01% – 90% | 3.10% |
| 15.00% – 19.99% | 80.01% – 85% | 2.80% |
| 20%+ | 80% or less | No premium |
CMHC mortgage insurance is mandatory for all home purchases in Canada where the down payment is less than 20% of the purchase price. The insurance premium is calculated as a percentage of the mortgage amount (not the purchase price) and is added directly to your mortgage balance.
For owner-occupied homes, CMHC insurance premiums are not tax-deductible. However, if the property is a rental or investment property, you may be able to deduct it over time. Consult a tax professional for your specific situation.
In Ontario and Quebec, provincial sales tax applies to the CMHC premium. Unlike the premium itself (which is added to your mortgage), the provincial tax must be paid in cash at closing — it cannot be rolled into your mortgage.
CMHC insurance enables home ownership earlier by allowing a 5% down payment instead of waiting to save 20%. For many Canadians, the insurance cost (paid over 25 years through a marginally higher mortgage balance) is far outweighed by getting into the market sooner and benefiting from property appreciation.
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