CMHC mortgage insurance is required for any mortgage with less than 20% down payment in Canada. The premium is a one-time charge added to your mortgage balance, ranging from 0.60% to 4.00% of the loan amount depending on your loan-to-value (LTV) ratio. A new 0.20% surcharge applies to 30-year amortizations for first-time buyers and newly built homes. As of December 15, 2024, the maximum insurable home price is $1.5 million.
Quick answer: 0.60% to 4.00% of the mortgage amount, depending on LTV. With 5% down (95% LTV), the premium is 4.00% — about $19,000 on a $475,000 mortgage. The premium is added to the mortgage and amortized over the life of the loan.
What this means: The premium feels invisible because you do not write a cheque for it, but it adds tens of thousands of dollars in interest over the mortgage term. Larger down payments can drop the premium tier substantially.
What to do next: Estimate your CMHC premium based on your home price and down payment. Calculate CMHC premium →
2026 CMHC premium tiers
| Loan-to-value (LTV) | Premium rate | On $400K mortgage |
|---|---|---|
| Up to 65% | 0.60% | $2,400 |
| 65.01% – 75% | 1.70% | $6,800 |
| 75.01% – 80% | 2.40% | $9,600 |
| 80.01% – 85% | 2.80% | $11,200 |
| 85.01% – 90% | 3.10% | $12,400 |
| 90.01% – 95% (standard) | 4.00% | $16,000 |
| 90.01% – 95% (non-traditional down payment) | 4.50% | $18,000 |
30-year amortization surcharge
Since December 15, 2024, first-time buyers and buyers of newly constructed homes can choose a 30-year amortization on an insured mortgage. The trade-off: a 0.20% surcharge on the premium rate.
Example: 90% LTV with 30-year amortization on a $500,000 mortgage. Base premium 3.10%, surcharge 0.20%, total 3.30% = $16,500 added to the mortgage balance. Compared to a 25-year amortization at the same LTV, the surcharge costs $1,000 in additional premium but spreads the same mortgage over 5 more years, reducing monthly payments by roughly 10-13%.
When CMHC insurance is required
- Down payment less than 20% of the purchase price (insured mortgage)
- Home price up to $1.5 million (raised from $1 million December 15, 2024)
- Property is owner-occupied (not pure investment property)
- Amortization up to 30 years for first-time buyers or new construction; up to 25 years otherwise
If your home costs more than $1.5 million, you must put at least 20% down and cannot use a CMHC-insured mortgage. The minimum down payment for an insured mortgage is 5% of the first $500,000 and 10% of the portion above.
Sagen and Canada Guaranty
CMHC is the largest mortgage insurer but not the only one. Sagen and Canada Guaranty also insure low-down-payment mortgages and follow the same federal premium schedule. Lenders choose which insurer to use, and the premium you pay is the same regardless. From a borrower’s perspective the choice is invisible.
Provincial sales tax on the premium
Some provinces charge provincial sales tax (PST) on CMHC premiums. The PST is paid at closing in cash, not added to the mortgage:
- Ontario: 8% PST on the CMHC premium
- Quebec: 9% (QST) on the CMHC premium
- Manitoba: 7% PST on the CMHC premium
- Saskatchewan: 6% PST on the CMHC premium
- Other provinces: No PST on the premium
Example: $400,000 mortgage in Ontario with 10% down. CMHC premium = 3.10% × $400,000 = $12,400. Ontario PST on premium = 8% × $12,400 = $992 due at closing.
Worked example
Jen is a first-time buyer in Toronto purchasing a $600,000 condo with $35,000 down (5.83% down). She qualifies for the 30-year amortization extension as a first-time buyer.
| Item | Value |
|---|---|
| Home price | $600,000 |
| Down payment | $35,000 (5.83%) |
| Mortgage before premium | $565,000 |
| LTV | 94.17% |
| Base premium (90-95% LTV) | 4.00% |
| 30-year amortization surcharge | +0.20% |
| Total premium rate | 4.20% |
| CMHC premium ($565,000 × 4.20%) | $23,730 |
| Final mortgage (premium added) | $588,730 |
| Ontario PST on premium (8%) | $1,898 due at closing |
If Jen could put 10% down ($60,000) instead of 5.83%, her LTV drops to 90% and the base premium falls to 3.10%. CMHC premium would be $540,000 × 3.30% (with surcharge) = $17,820 — saving roughly $5,900 in premium plus $470 in PST.
Why a slightly larger down payment matters
The LTV tier breaks are real cliffs in the premium schedule:
- Crossing from 95% to 90% LTV: 4.00% → 3.10% (saves 0.90% of mortgage)
- Crossing from 90% to 85% LTV: 3.10% → 2.80% (saves 0.30%)
- Crossing from 85% to 80% LTV: 2.80% → 2.40% (saves 0.40%)
- Crossing from 80% to 75% LTV: 2.40% → 1.70% (saves 0.70%)
Saving just enough to cross one tier often pays for itself within a year through interest savings on the smaller mortgage and the lower premium.
Frequently asked questions
- How much is CMHC insurance in 2026?
- 0.60% to 4.00% of the mortgage amount, depending on loan-to-value. Add a 0.20% surcharge for 30-year amortizations on first-time buyer or new construction purchases.
- When do I need CMHC insurance?
- Any insured mortgage with less than 20% down payment. The maximum insurable home price is $1.5 million as of December 15, 2024.
- Is the CMHC premium added to my mortgage?
- Yes. The premium is added to the mortgage balance and amortized over the loan’s amortization period. You do not pay it up front in cash.
- Does CMHC charge a 30-year amortization surcharge?
- Yes. A 0.20% surcharge applies to the base premium rate when the amortization exceeds 25 years (first-time buyers and new construction only).
- Do I pay PST on the CMHC premium?
- In Ontario (8%), Quebec (9%), Manitoba (7%), and Saskatchewan (6%) yes. The PST is paid in cash at closing, not added to the mortgage.
- Can I avoid CMHC insurance?
- Put 20% or more down. For home prices above $1.5 million, CMHC insurance is not available, so 20% down is required by default.
- What is the minimum down payment in Canada?
- 5% of the first $500,000 of the home price, plus 10% of the portion above. A $700,000 home requires at least $45,000 down.