Free Tool — 2026
CMHC Mortgage Insurance Calculator
Calculate your CMHC default insurance premium, see your monthly payment with and without CMHC, and find out exactly how long it takes to break even by saving to 20% down instead.
Live rate used: 4.89% (5-year fixed, broker)
With CMHC (10% Down)
Monthly payment (25-yr amortization)
Without CMHC (20% Down)
Monthly payment (25-yr amortization)
Break-Even Analysis
If you saved to 20% down instead, the monthly payment saving of $441.53 would offset the $18,079 CMHC cost in approximately 41 months (3.4 years). After that point, the 20%-down scenario saves money every month.
Home Price
$600,000
Down Payment
$60,000
CMHC Premium
$16,740
Insured Mortgage
$556,740
CMHC Premium Rate Schedule
| Down Payment | Premium Rate | On This Mortgage |
|---|---|---|
| 5.00% – 9.99% | 4.00% | $22,800 |
| 10.00% – 14.99%(your tier) | 3.10% | $16,740 |
| 15.00% – 19.99% | 2.80% | $14,280 |
| 20%+ | No CMHC | — |
* "On This Mortgage" shows example premium at minimum down payment for each tier on a $600,000 home.
Ontario charges PST on CMHC premiums
Ontario applies 8.0% provincial sales tax on CMHC insurance premiums. Unlike the CMHC premium itself, PST of $1,339 cannot be added to your mortgage — it must be paid in cash at closing.
Want to avoid CMHC entirely?
A broker can show you programs to reach 20% down faster — FHSA, RRSP Home Buyers’ Plan, or gifted down payment options.
Talk to a Broker →What Is CMHC Mortgage Insurance?
CMHC mortgage default insurance is a mandatory premium required by Canadian law whenever a homebuyer puts down less than 20% of a home’s purchase price. It is provided by three insurers: CMHC (Canada Mortgage and Housing Corporation), Sagen (formerly Genworth Canada), and Canada Guaranty.
The insurance protects the lender — not the borrower — in the event the borrower defaults on their mortgage. Despite protecting the bank, the buyer pays the premium. The upside is that mortgage default insurance allows lenders to offer mortgages at their best rates to buyers with smaller down payments, since their risk is backstopped by the insurer.
CMHC is not available on homes priced above $1,499,999. Purchases above this threshold require a minimum 20% down payment regardless.
How CMHC Insurance Works
Premium is calculated on the mortgage amount
The CMHC premium is a percentage of your mortgage (not the purchase price). With 10% down on a $600,000 home, your mortgage is $540,000 and the premium at 3.10% is $16,740.
Premium is added to your mortgage balance
The $16,740 is added to your mortgage, making it $556,740. You pay it off gradually over your amortization period — you do not need to produce it as cash at closing.
PST (in applicable provinces) is paid at closing
Ontario, Quebec, Manitoba, and Saskatchewan charge provincial sales tax on the CMHC premium. This PST cannot be rolled into the mortgage — it must be paid in cash at closing alongside your legal fees and land transfer tax.
Insurance enables better rates
Insured mortgages often carry slightly lower interest rates than uninsured ones (20%+ down). The lender’s risk is lower, so they can pass savings along. The rate difference is typically 0.10–0.20%.
How to Avoid CMHC Insurance
The only way to avoid CMHC is to reach 20% down payment. These strategies can help:
| Strategy | Max Amount | Notes |
|---|---|---|
| FHSA (First Home Savings Account) | $40,000 | Tax-deductible contributions, tax-free withdrawals |
| RRSP Home Buyers' Plan (per person) | $35,000 | Must repay over 15 years |
| RRSP HBP (couple combined) | $70,000 | $35K each if both qualify |
| Gifted down payment | Unlimited | From immediate family; must be a gift, not a loan |
| FHSA + RRSP HBP (individual) | $75,000 | Combined maximum for one person |
Insured vs Conventional Mortgage
Choosing between an insured mortgage (under 20% down) and a conventional mortgage (20%+ down) involves more than just the CMHC premium. Here is a side-by-side comparison:
| Factor | Insured (<20% down) | Conventional (20%+ down) |
|---|---|---|
| CMHC premium | Yes (2.80–4.00%) | No |
| Max amortization | 25 years | 30 years |
| Max purchase price | $1,499,999 | No limit |
| Interest rate | Slightly lower | Slightly higher |
| Monthly payment (all else equal) | Higher (larger mortgage) | Lower (smaller mortgage) |
| Upfront cash needed | Less (smaller down payment) | More (larger down payment) |
Frequently Asked Questions
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Minimize Your CMHC Cost
A broker can show you the fastest path to 20% down and find your best insured rate today.