CMHC Mortgage Insurance Calculator
By Hami Tahm · Last reviewed August 2026
What CMHC mortgage default insurance actually costs — the premium rate for your loan-to-value, the dollar amount, and the provincial tax that's cash at closing rather than financed.
Need your minimum down payment first? Use the down payment calculator.
How much is CMHC insurance in Canada?
On a $600,000 home with $60,000 down (90.00% loan-to-value), the CMHC premium is $16,740 at a 3.10% rate — added to the mortgage, so you pay interest on it too. In Ontario, you'd also owe $1,339 in provincial sales tax on the premium, payable in cash at closing (Ontario, Quebec and Saskatchewan tax the premium; other provinces don't). Below 20% down, this insurance is mandatory at every federally regulated lender — it isn't optional and doesn't depend on your credit score.
Your purchase
For payment amounts and amortization schedules, use the full mortgage payment calculator.
CMHC premium
$16,740
3.10% of your $540,000 base mortgage, at 90.00% loan-to-value.
Cash vs. financed
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Key Takeaways
- CMHC premium bands are cliffs, not a slope — crossing 80%, 85%, 90% or 95% loan-to-value applies the higher rate to the entire premium, not just the portion above the line.
- The premium itself is usually added to your mortgage and financed over your amortization — you pay interest on it for the life of the loan.
- Provincial sales tax on the premium is the exception: in Ontario (8%), Quebec (9%) and Saskatchewan (6%) it's cash at closing and cannot be added to the mortgage.
- CMHC insurance is mandatory below 20% down at every federally regulated lender, and unavailable at all on homes priced at or above $1.5 million.
- A 30-year insured amortization (first-time buyers and new builds only) adds a 0.20 percentage point surcharge to whichever band rate applies.
CMHC premium bands — where the cliffs are
Loan-to-value bands and base rates, computed from the same schedule the calculator above uses. The 0.20 percentage point 30-year surcharge (where it applies) is added on top of these base rates.
| Loan-to-value up to | Down payment at least | Premium rate |
|---|---|---|
| 65.00% | 35.00% | 0.60% |
| 75.00% | 25.00% | 1.70% |
| 80.00% | 20.00% | 2.40% |
| 85.00% | 15.00% | 2.80% |
| 90.00% | 10.00% | 3.10% ← your band |
| 95.00% | 5.00% | 4.00% |
Above 95% loan-to-value (less than 5% down), CMHC insurance isn't available at all — 5% is the legal minimum down payment on homes priced up to $500,000.
Frequently asked questions
- How is CMHC mortgage insurance calculated?
- CMHC charges a premium as a percentage of the mortgage amount (not the purchase price), and the rate depends entirely on your loan-to-value ratio — how much you're borrowing relative to the home's price. There are six bands, from 0.60% at 65% LTV or less up to 4.00% at 90.01–95% LTV. Crossing into a higher band applies the higher rate to the whole premium, not just the portion above the threshold.
- Do I have to pay the CMHC premium in cash?
- No — the premium itself is normally added to your mortgage balance and paid off over your amortization, like the rest of the loan. The one part that is cash at closing is provincial sales tax on the premium, which applies in Ontario (8%), Quebec (9%) and Saskatchewan (6%). Every other province charges no PST on the premium.
- What happens if my down payment is right at a premium band boundary?
- The bands are cliffs, not a smooth slope. Landing at exactly 80.00% LTV gets the 2.40% rate; landing one dollar over at 80.01% jumps you into the 2.80% band, applied to the entire insured mortgage — not just the extra dollar. A few hundred dollars more down payment can be worth thousands in premium once you're near a boundary.
- Is CMHC mortgage insurance mandatory in Canada?
- Yes, for any mortgage with less than 20% down at a federally regulated lender — this is a legal requirement, not a lender preference. It's also only available on homes priced under $1.5 million; at or above that, 20% down is mandatory and insurance isn't offered at any down payment size.
- How do I avoid paying CMHC insurance?
- Put down at least 20% of the purchase price. That makes the mortgage 'conventional' rather than 'insured' — no premium, no band to fall into, and no provincial tax on a premium that doesn't exist. Below 20% down, insurance applies regardless of income, credit score, or lender, because it's federal policy rather than a lender's risk decision.
Want the full picture, including monthly payment and total upfront cash? The down payment calculator runs this same engine end to end, and the affordability calculator tells you the maximum price you'd qualify for in the first place.
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