In Canada, a mortgage needs default insurance when your down payment is less than 20% of the price. This calculator works out the CMHC premium from your price and down payment, adds the surcharge for a 30-year amortization and shows the sales tax some provinces charge on the premium. On a $600,000 home with $60,000 down (10%), the premium is 3.10% of the $540,000 loan, or $16,740, for a total mortgage of $556,740. In Ontario you also pay $1,339.20 of sales tax on the premium at closing.
CMHC Insurance Calculator
Mortgage default insurance premium, 30-year surcharge and sales tax · Updated October 13, 2026
- Down payment
- –
- Loan-to-value
- –
- Premium rate
- –
- Mortgage before insurance
- –
- Total mortgage with premium added
- –
- Sales tax on the premium, due at closing
- –
- Minimum down payment for this price
- –
CMHC homeowner rates for owner-occupied homes with a traditional down payment (savings, gift or sale of a home). Private insurers set their own premiums, which are often similar.
CMHC premium rates
The premium is a percentage of the loan amount, and the rate depends on the loan-to-value ratio: the mortgage divided by the price (or appraised value, if lower). The smaller your down payment, the higher the rate. The premium is a one-time charge that is usually added to the mortgage.
| Loan-to-value | Down payment | Premium, 25 years | Premium, 30 years (Home Start) |
|---|---|---|---|
| Up to 65% | 35% or more | 0.60% | – |
| 65.01% to 75% | 25% to 34.99% | 1.70% | – |
| 75.01% to 80% | 20% to 24.99% | 2.40% | – |
| 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% |
The first three rows apply only if a mortgage with 20% or more down is insured anyway, which buyers are not required to do. For most buyers with less than 20% down, the rate is 2.80%, 3.10% or 4.00%.
Rules for an insured mortgage in 2026
- Price cap: the purchase price must be below $1,500,000. The cap rose from $1 million on December 15, 2024. At $1.5 million or more you need at least 20% down.
- Minimum down payment: 5% of the first $500,000 and 10% of the part above $500,000, for homes with 1 or 2 units. For 3 or 4 units the minimum is 10%.
- Amortization: up to 25 years, or 30 years through CMHC Home Start if at least one borrower is a first-time buyer or the home is newly built and never occupied. The 30-year option adds 0.20% to the premium.
- Qualifying: housing costs must be within 39% of gross income (GDS) and all debts within 44% (TDS), tested at the higher of your contract rate plus 2% or 5.25%. At least one borrower needs a credit score of 600 or more.
- Owner-occupied: you or a close relative living rent-free must live in the home.
For Home Start, a first-time buyer is someone who has never bought a home, or who has not lived in a home owned by them or their current spouse or partner in the current year or the four previous calendar years, or who recently separated from a spouse or partner.
Sales tax on the premium
Ontario, Quebec and Saskatchewan charge provincial tax on mortgage insurance premiums. Ontario’s retail sales tax on insurance is 8%, Saskatchewan’s PST is 6%, and Quebec’s tax on insurance premiums is 9%, rising to 9.975% for premiums paid after December 31, 2026. Unlike the premium itself, this tax cannot be added to the mortgage, so budget for it with your closing costs.
Examples
| Price | Down payment | Amortization | Premium | Total mortgage |
|---|---|---|---|---|
| $400,000 | $20,000 (5%) | 25 years | 4.00% = $15,200 | $395,200 |
| $600,000 | $60,000 (10%) | 25 years | 3.10% = $16,740 | $556,740 |
| $600,000 | $60,000 (10%) | 30 years | 3.30% = $17,820 | $557,820 |
| $800,000 | $120,000 (15%) | 25 years | 2.80% = $19,040 | $699,040 |
| $1,200,000 | $95,000 (minimum) | 30 years | 4.20% = $46,410 | $1,151,410 |
Going from 9% to 10% down on a $600,000 home moves you from the 4.00% band to 3.10%, which cuts the premium from about $21,840 to $16,740 while the down payment rises only $6,000. Check whether a small top-up gets you into a lower band.
Ways to reduce the cost
- Put down a little more to move into a lower band (10% or 15% are the break points).
- CMHC’s Eco products give a 25% partial premium refund when you buy or build an energy-efficient home or make qualifying energy-saving improvements.
- If you move and take your insured mortgage with you (portability), the premium on the new loan can be reduced or eliminated.
- Choose 25 years instead of 30 if the payment fits your budget: you save the 0.20% surcharge and a lot of interest.
FAQ
Is CMHC insurance paid every month?
No. It is a one-time premium. Most buyers add it to the mortgage, so it is repaid with interest as part of the regular payment. The provincial sales tax on it, where it applies, is paid at closing.
Do I need CMHC insurance with 20% down?
No. With 20% or more down, the mortgage is a conventional (uninsured) mortgage. You still have to pass the stress test with a federally regulated lender.
Can I get an insured mortgage on a $1.5 million home?
No. The price has to be below $1,500,000. At $1.5 million or more, the minimum down payment is 20%, so insurance does not apply.
Is the premium the same with Sagen or Canada Guaranty?
Lenders can also insure mortgages with private insurers. They publish their own rates, which are often the same or close to CMHC’s, so ask your lender which insurer it uses.
Related calculators
- Mortgage Payment CalculatorPayments on the insured amount
- Mortgage Affordability CalculatorStress test and GDS/TDS limits
- FHSA CalculatorBuild a bigger down payment tax-free
- BC Property Transfer Tax CalculatorClosing costs in B.C.
Sources
- CMHC: Mortgage loan insurance premiums · premium schedule and provincial sales tax
- CMHC: CMHC Purchase · price cap, minimum equity, GDS/TDS
- CMHC: CMHC Home Start · 30-year amortization and premiums
- Department of Finance Canada: Mortgage reforms in force December 15, 2024
- Ontario: Retail sales tax on insurance and benefits plans · 8%
- Revenu Québec: Tax on insurance premiums · 9%
- Revenu Québec: Harmonization of the insurance premiums tax rate with the QST rate · 9.975% after December 31, 2026
- Saskatchewan: Provincial sales tax · 6%
Figures current as of October 13, 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
Spotted a mistake? Contact us and we will fix it and update the date above.