Insured vs Uninsured Mortgage Canada

Understand the key differences, CMHC premiums, and which type fits your situation

Quick Answer: Insured = less than 20% down, requires CMHC insurance (premium added to mortgage), only available on properties under $1.5M. Uninsured = 20%+ down, no insurance required, available on properties of any price. Despite the insurance cost, insured mortgages often have slightly lower interest rates.

Side-by-Side Comparison

Feature	Insured Mortgage	Uninsured Mortgage
Down Payment	5%–19.99%	20%+
Property Price Limit	Under $1.5 million	No limit
CMHC Insurance	Required (2.4%–4.0% of mortgage)	Not required
Max Amortization (insured)	25 years (30 for new builds)	25–30 years (lender dependent)
Interest Rate	Often slightly lower	Often slightly higher (more lender risk)
Stress Test	Contract rate + 2% or 5.25%	Contract rate + 2% or 5.25%
Available For	Owner-occupied primary residences	Primary residences, investment properties
Rental Properties	Not available	Available (different rules)

CMHC Insurance Cost Calculator

Calculate Your CMHC Premium & Compare Insured vs Uninsured Cost

Purchase Price ($) Down Payment ($) Interest Rate for Insured Mortgage (%) Interest Rate for Uninsured Mortgage (at 20% down) (%) Amortization (years)

Understanding CMHC Mortgage Insurance

CMHC (Canada Mortgage and Housing Corporation) insurance — also provided by private insurers Sagen and Canada Guaranty — protects lenders (not borrowers) in case of default. The borrower pays the premium, but the lender receives the benefit. This sounds counterintuitive, but the result is that lenders accept smaller down payments because their risk is covered.

CMHC Premium Rates (2026)

5%–9.99% down payment: 4.00% of mortgage amount
10%–14.99% down payment: 2.80% of mortgage amount
15%–19.99% down payment: 2.40% of mortgage amount

The premium is added to your mortgage balance and amortized over your full amortization period. On a $480,000 mortgage (5% down on $500,000), the CMHC premium is $19,200 — adding this to your mortgage means you pay interest on it too, which increases the effective total cost.

The Rate Advantage of Insured Mortgages

Counterintuitively, insured mortgages often carry slightly lower interest rates than uninsured mortgages. This is because the CMHC guarantee reduces lender risk, allowing them to offer lower rates. The rate differential is typically 0.10–0.25%. Whether this rate advantage offsets the CMHC premium depends on your specific loan amount and rate difference — use the calculator above to run your own scenario.

The $1.5 Million Purchase Price Cap

Insured mortgages are only available for properties priced below $1.5 million (increased from $1 million in late 2024). Properties at or above $1.5 million require a conventional uninsured mortgage with at least 20% down. This limit means most Metro Vancouver and Toronto buyers of single-family homes are in the conventional/uninsured category, which affects their mortgage product options and rates.

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Related Resources

Last updated: March 2026. CMHC premium rates current as of 2026. Not financial advice.