CMHC Mortgage Insurance Canada 2025 — Calculator & Complete Guide

What Is CMHC Mortgage Insurance?

Mortgage default insurance (commonly called CMHC insurance) is mandatory in Canada for homebuyers with less than 20% down payment. The insurance protects the lender — not the borrower — in case the borrower defaults on the mortgage. Despite protecting the lender, the cost is paid entirely by the borrower.

Three insurers provide mortgage default insurance in Canada:

• CMHC (Canada Mortgage and Housing Corporation): The federal Crown corporation and largest insurer
• Sagen (formerly Genworth Canada): Private insurer with similar premiums to CMHC
• Canada Guaranty: Private insurer; lenders choose which insurer to use

All three insurers charge the same premium rates, so the insurer chosen by your lender doesn't affect your cost as a borrower.

CMHC Premium Rates 2025

CMHC Premium Limits and Eligibility

CMHC insurance has several eligibility restrictions:

• Maximum purchase price: $1,499,999 for insured mortgages. Properties at $1,500,000 or above cannot use CMHC insurance and require a minimum 20% down payment.
• Minimum down payment: 5% for homes under $500,000. For homes $500,000-$999,999: 5% on the first $500,000 + 10% on the portion above $500,000.
• Maximum amortization: 25 years for most insured mortgages (30 years for first-time buyers purchasing new builds, effective late 2024)
• Property type: Owner-occupied only (1-4 units; rental income properties have different rules)

How CMHC Premium Is Paid

The CMHC premium is added to your mortgage balance and amortized over the life of your mortgage — you don't typically pay it upfront. For a $600,000 home with $60,000 down (10%), the mortgage is $540,000, the premium is $16,740 (3.1%), and the total insured mortgage becomes $556,740.

PST (Provincial Sales Tax) applies to CMHC premiums in Ontario, Manitoba, Quebec, and Saskatchewan. This PST portion must be paid at closing — it cannot be added to the mortgage. At 8% PST in Ontario, the PST on a $16,740 premium would be $1,339.

Is CMHC Insurance Worth It?

While the CMHC premium adds cost, it also enables Canadians to buy homes with as little as 5% down. For a first-time buyer in a city where home prices are high, saving the full 20% could take many additional years — during which home prices may rise further. The premium cost (added to mortgage) is real but modest relative to the benefit of getting into the market sooner.

However, if you can save 20% and avoid the premium, you save the full premium amount plus years of interest on that premium. The right answer depends on your specific situation, market conditions, and timeline.