CMHC Mortgage Insurance Explained
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CMHC mortgage insurance is what lets you buy a home with less than 20% down. It protects your lender, not you, if you stop paying your mortgage. In exchange, you pay a one-time premium that, as of October 18, 2026, ranges from 0.60% to 4.00% of the loan on a 25-year amortization.
This guide explains how the CMHC premium is calculated, who qualifies, what it costs on real prices, and how to pay less. To get your own figure, use our CMHC insurance calculator. For rates and lenders, start with our mortgages hub.
What CMHC mortgage insurance covers
Mortgage default insurance, which CMHC calls mortgage loan insurance, pays the lender if a borrower defaults. Because the lender is protected, it can lend up to 95% of the home's value. Without that protection, federally regulated lenders need at least 20% down.
The Canada Mortgage and Housing Corporation (CMHC) is a federal Crown corporation. Two private insurers, Sagen and Canada Guaranty, sell the same type of coverage. Your lender chooses the insurer and applies on your behalf, so you rarely deal with CMHC directly.
This insurance does not pay your mortgage if you lose your job, get sick, or die. That is mortgage protection insurance, a separate and optional product. Our guide to mortgage insurance in Canada compares the two.
When you need it
You need mortgage default insurance whenever your down payment is under 20% of the purchase price. As of October 18, 2026, CMHC's homeowner products require:
- Purchase price: below $1,500,000
- Maximum loan-to-value: 95% for 1 or 2 units, 90% for 3 or 4 units
- Occupancy: you, or a relative living rent-free, must live in the home
- Amortization: up to 25 years, or up to 30 years under CMHC Home Start
CMHC Home Start is the 30-year option. It is open when at least one borrower is a first-time homebuyer or when the home is newly built and never occupied. It covers high-ratio loans only, meaning less than 20% down.
CMHC premium rates
The table below shows CMHC's premiums for owner-occupied homes as of October 18, 2026. The rate depends on your loan-to-value ratio, which is the loan divided by the home's value. A smaller down payment means a higher ratio and a higher rate.
| Loan-to-value ratio | Down payment | Premium, 25 years (CMHC Purchase) | Premium, 30 years (CMHC Home Start) |
|---|---|---|---|
| Up to 65% | 35% or more | 0.60% | Not offered (high-ratio only) |
| 65.01% to 75% | 25% to 34.99% | 1.70% | Not offered (high-ratio only) |
| 75.01% to 80% | 20% to 24.99% | 2.40% | Not offered (high-ratio only) |
| 80.01% to 85% | 15% to 19.99% | 2.80% | 3.00% |
| 85.01% to 90% | 10% to 14.99% | 3.10% | 3.30% |
| 90.01% to 95% | 5% to 9.99% | 4.00% | 4.20% |
| 90.01% to 95%, non-traditional down payment | 5% to 9.99%, borrowed | 4.50% | 4.70% |
If your down payment comes from borrowed money, such as an unsecured personal loan or line of credit, CMHC calls it a non-traditional down payment. It is allowed only for 1 or 2 unit homes between 90.01% and 95% loan-to-value, for borrowers with a strong credit history. The premium then rises to 4.50% on 25 years, or 4.70% on 30 years.
How the premium is calculated
The premium equals the rate multiplied by the mortgage amount, not the purchase price. Most buyers add it to the mortgage and repay it over the amortization, with interest. CMHC describes it as a one-time charge that may be added to the insured loan.
Take a $500,000 home with the minimum 5% down:
- Down payment: $25,000
- Mortgage before insurance: $475,000, or 95% loan-to-value
- Premium at 4.00% (25 years): $19,000
- Total mortgage: $494,000
With a 30-year Home Start amortization, the rate is 4.20%, so the premium becomes $19,950. The next table repeats the exercise at $750,000 with three down payments.
| Down payment | Mortgage amount | Loan-to-value | Premium (25 years) | Premium (30 years, Home Start) |
|---|---|---|---|---|
| $50,000 (minimum, 6.67%) | $700,000 | 93.33% | $28,000 (4.00%) | $29,400 (4.20%) |
| $75,000 (10%) | $675,000 | 90.00% | $20,925 (3.10%) | $22,275 (3.30%) |
| $150,000 (20%) | $600,000 | 80.00% | Not required | Not required |
Who qualifies for CMHC insurance
The insurer also looks at your file. As of October 18, 2026, CMHC sets these limits for its homeowner products:
- Gross debt service (GDS) ratio: 39% maximum
- Total debt service (TDS) ratio: 44% maximum
- Credit score: at least 600 for one borrower or guarantor
- Qualifying rate: the greater of your contract rate plus 2% or 5.25%
Canadian citizens, permanent residents, and non-permanent residents authorized to work in Canada can apply. Newcomers without a Canadian credit history may use an international credit report or a reference letter from a bank in their country of origin. The qualifying rate is the same one used in the mortgage stress test; our affordability calculator applies it for you.
Provincial sales tax on the premium
In Ontario, Quebec, and Saskatchewan, provincial sales tax applies to the mortgage insurance premium. You pay it in cash at closing: CMHC states that it cannot be added to the loan amount. Plan for it alongside land transfer tax, which you can estimate with our land transfer tax calculator.
How to pay less for CMHC insurance
The premium falls sharply each time your loan-to-value crosses a threshold. Here are the levers that make the biggest difference:
- Cross a threshold: on a $750,000 home, going from the minimum down payment to 10% down drops the rate from 4.00% to 3.10% and the premium from $28,000 to $20,925.
- Reach 85% or 80%: at 85% loan-to-value the rate is 2.80%, and at 80% or less no default insurance is required.
- Choose 25 years if you can afford it: Home Start's 30-year rates are 0.20 points higher at every high-ratio tier.
- Use your own savings: a borrowed down payment raises the rate from 4.00% to 4.50% at 90.01% to 95% loan-to-value.
- Buy or build energy-efficient: CMHC's Eco Products can refund 25% of the premium on qualifying energy-efficient homes.
Portability and premium credits
If you sell and buy again while your CMHC-insured mortgage is in force, the portability feature can reduce or eliminate the premium on the new loan. When you borrow more on the new home, CMHC charges its premium only on the increase, at a separate rate schedule.
CMHC also gives a premium credit when a new insurance request follows the original closing quickly. Its lender guide lists a credit of 100% of the premium already paid at 6 months, 50% at 12 months, and 25% at 24 months. Ask your lender to check whether a credit applies before you sign.
Conclusion
CMHC mortgage insurance costs between 0.60% and 4.00% of your loan on a 25-year amortization as of October 18, 2026, and up to 4.20% on a 30-year Home Start loan. On a $750,000 home with the minimum down payment, that is $28,000 added to the mortgage. Each step up in your down payment cuts the rate, and 20% down removes the premium entirely.
Run your own numbers with our CMHC insurance calculator and our down payment calculator, then lock in a mortgage pre-approval.
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Frequently asked questions about CMHC mortgage insurance
How much is CMHC insurance on a $500,000 house?
With the minimum 5% down, you borrow $475,000, which is 95% of the value. As of October 18, 2026, CMHC's premium at that ratio is 4.00% on a 25-year amortization, so you pay $19,000, usually added to the mortgage. On a 30-year Home Start loan, the 4.20% rate brings it to $19,950. Our CMHC insurance calculator runs any price.
Can I avoid CMHC insurance?
Yes, by putting at least 20% down, which brings your loan-to-value to 80% or less. On a home priced at $1.5 million or more, insurance is not available, so 20% down is mandatory anyway. The FHSA and the Home Buyers' Plan can help you reach that threshold faster; see our down payment calculator for the amount at your price.
Is CMHC insurance paid monthly?
No. It is a one-time premium, usually added to your mortgage balance and repaid through your regular payments over the amortization. Because it is part of the loan, you also pay interest on it. The only part you pay upfront is the provincial sales tax on the premium in Ontario, Quebec, and Saskatchewan. Compare the effect on your payment with our mortgage payment calculator.
Does CMHC insurance protect me if I lose my job?
No. CMHC mortgage insurance protects the lender if you default. It does not make your payments if you lose your job, become ill, or die. That coverage comes from mortgage protection insurance or a separate life and disability policy, which are optional. Our guide to mortgage insurance in Canada explains the difference.
What is the difference between CMHC, Sagen, and Canada Guaranty?
All three sell mortgage default insurance in Canada. CMHC is a federal Crown corporation, while Sagen and Canada Guaranty are private insurers. Your lender picks the insurer and applies for you, so you rarely choose. Before you sign, ask your lender which insurer it used and what premium rate applies to your file. Our comparison of mortgage brokers vs banks helps you find the right lender.
Can I get a 30-year mortgage with CMHC insurance?
Yes, through CMHC Home Start, if at least one borrower is a first-time homebuyer or the home is newly built and never occupied. It applies to loans with less than 20% down, on homes under $1.5 million. As of October 18, 2026, the premium is 4.20% at 90.01% to 95% loan-to-value, compared with 4.00% on 25 years. Our mortgages hub covers the trade-offs of a longer amortization.
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