CMHC mortgage loan insurance (also called CMHC insurance or mortgage default insurance) is required in Canada for any home purchase with a down payment of less than 20% of the purchase price. The Canada Mortgage and Housing Corporation (CMHC), along with two private insurers (Sagen and Canada Guaranty), administers the insurance under the National Housing Act. The insurance premium is calculated as a percentage of the mortgage amount and is added to the mortgage principal — it is not paid upfront in cash at closing.
As of 2026, the maximum insurable purchase price is $1.5 million (effective December 15, 2024).
Quick Answer
CMHC insurance premium rates for 2026 based on loan-to-value (LTV) ratio:
| Down payment | LTV | Premium rate | Premium on $600,000 mortgage |
|---|---|---|---|
| 5% | 95% | 4.00% | $24,000 |
| 10% | 90% | 3.10% | $18,600 |
| 15% | 85% | 2.80% | $16,800 |
| 20%+ | 80% or less | None | $0 |
How CMHC Insurance Works
The premium is calculated on the mortgage amount (not the purchase price). It is added to the principal balance and amortized over the mortgage term. The premium does not reduce over time as the loan is paid down — it is fixed at origination.
Formula: Premium = Mortgage amount x Premium rate. Total insured mortgage = Mortgage amount + Premium.
Example: $700,000 purchase with 5% down ($35,000). Mortgage: $665,000. Premium: $665,000 x 4.00% = $26,600. Total insured mortgage: $691,600.
Additional Tiers
Lower LTV ratios attract lower premiums. CMHC publishes the following standard schedule for traditional down payment sources:
| LTV range | Premium rate |
|---|---|
| Up to 65% | 0.60% |
| 65.01% to 75% | 1.70% |
| 75.01% to 80% | 2.40% |
| 80.01% to 85% | 2.80% |
| 85.01% to 90% | 3.10% |
| 90.01% to 95% | 4.00% |
| Non-traditional down payment (90.01% to 95%) | 4.50% |
Non-traditional down payment sources include borrowed funds, employer grants, and gifts from non-immediate family. Self-employed borrowers with non-traditional income documentation may qualify for the standard rates if documentation requirements are met, otherwise the 4.50% rate applies at high LTV.
30-Year Amortization Surcharge
Borrowers selecting a 30-year amortization period for an insured mortgage pay an additional 0.20% surcharge on the CMHC premium rate. This applies because longer amortizations increase the insurer’s risk exposure over time. A 95% LTV mortgage with 30-year amortization carries a 4.20% premium rate (4.00% + 0.20%).
Minimum Down Payment Requirements
- Homes priced up to $500,000: minimum 5% down payment.
- Homes priced $500,001 to $999,999: 5% on the first $500,000 plus 10% on the amount above $500,000.
- Homes priced $1,000,000 to $1,500,000: minimum 10% down payment throughout (effective December 2024).
- Homes priced above $1,500,000: not eligible for CMHC insurance; conventional mortgage required with 20%+ down.
The Cliff Effect
Because CMHC premium tiers are applied to the entire mortgage (not just the portion above a threshold), there can be a cliff at each LTV boundary. Increasing your down payment enough to cross into a lower tier reduces the premium on the whole mortgage, not just the marginal amount. The calculator’s chart illustrates this: the premium curve drops sharply at 10% and 15% down payment marks. A small additional down payment near these thresholds produces an outsized reduction in insurance cost.
Tax Treatment of CMHC Premium
The CMHC premium is not deductible as a current expense for owner-occupied homes. For income-producing properties (rental homes), the premium added to the mortgage is part of the capital cost of the property and reduces capital gain when the property is sold; portions may also be deducted as an interest expense adjustment in some circumstances. Buyers do not pay GST/HST on CMHC premiums when the insurance is required under the National Housing Act.
Edge Cases and Rules
- Portability: CMHC insurance follows the mortgage when a borrower moves and assumes an existing insured mortgage or ports their existing mortgage to a new property, subject to qualifying conditions.
- Renewal: CMHC-insured mortgages that renew with the same or a different lender retain the same insurance certificate for the life of the original mortgage term; no additional premium is charged at renewal.
- Refinancing: Refinancing an insured mortgage (increasing the loan amount) may require a new premium calculation on the additional amount borrowed.
- CMHC insurance cannot be cancelled by the borrower once in place, even if the borrower later pays down the mortgage to below 80% LTV. The insurance remains on the mortgage until it is fully discharged.
Frequently asked questions
- What is the CMHC insurance premium for a 5% down payment?
- A 5% down payment results in a 95% LTV, which carries a 4.00% CMHC premium on the mortgage amount. On a $700,000 purchase with 5% down ($35,000), the mortgage is $665,000 and the premium is $665,000 x 4.00% = $26,600, added to the mortgage principal.
- Is CMHC insurance mandatory?
- Yes. Any home purchase in Canada with a down payment of less than 20% of the purchase price (below $1.5 million) requires mortgage default insurance from CMHC, Sagen, or Canada Guaranty. Lenders regulated by OSFI cannot extend conventional insured mortgages without this coverage.
- How is the CMHC premium paid?
- The CMHC premium is added to the mortgage principal and repaid as part of your regular mortgage payments over the amortization period. You do not pay the premium in a lump sum at closing, though provincial sales tax on the premium (in Ontario, Quebec, and Manitoba) is due at closing and cannot be added to the mortgage.
- What is the maximum CMHC-insured purchase price in 2026?
- The maximum purchase price eligible for CMHC mortgage insurance is $1.5 million, effective December 15, 2024. Homes priced above $1.5 million require at least 20% down payment and conventional mortgage financing without default insurance.
- Does a 30-year amortization cost more in CMHC insurance?
- Yes. A 30-year amortization period for an insured mortgage attracts a 0.20% premium surcharge on top of the standard LTV-based rate. A 95% LTV mortgage at 30-year amortization pays 4.20% instead of 4.00%. The extra cost reflects the insurer's higher long-term risk exposure.
- At what down payment does CMHC insurance no longer apply?
- CMHC insurance is not required for any mortgage where the down payment is 20% or more of the purchase price. A 20% down payment results in an 80% LTV, which is the threshold at which standard uninsured (conventional) mortgage financing applies.
- Can I cancel CMHC insurance once my equity reaches 20%?
- No. CMHC insurance cannot be cancelled by the borrower once in place. It stays on the mortgage for its full term regardless of how much equity has accumulated. The only way to exit the insurance is to pay off the mortgage in full.
- What is the minimum down payment for a $750,000 home?
- For a $750,000 home, the minimum down payment is: 5% of the first $500,000 = $25,000, plus 10% of the remaining $250,000 = $25,000. Total minimum down payment: $50,000 (6.67% of purchase price). The resulting mortgage is $700,000, and the CMHC premium at 93.3% LTV is $700,000 x 4.00% = $28,000.
- Do I pay GST or HST on the CMHC premium?
- No. The CMHC premium itself is not subject to GST or HST when the insurance is required under the National Housing Act. However, some provinces (Ontario, Quebec, Manitoba) levy provincial sales tax on CMHC premiums at the provincial rate, payable at closing. This provincial tax cannot be added to the mortgage.
- Is the CMHC premium tax-deductible?
- Not for owner-occupied homes. For income-producing rental properties, the CMHC premium added to the mortgage is a capital cost, reducing any capital gain on eventual sale. It is not deductible as a current operating expense in the year it is paid.
- What happens to CMHC insurance when I renew my mortgage?
- CMHC insurance stays on the mortgage at renewal. No additional premium is charged at renewal as long as the loan amount does not increase. Switching lenders at renewal does not trigger a new premium, but the new lender verifies the existing insurance certificate is valid for the transferred mortgage.