How Much Does CMHC Mortgage Loan Insurance Cost?
To obtain CMHC Mortgage Loan Insurance, lenders pay an insurance premium. Typically, your lender will pass these costs on to you. Your lender will give you the exact price when you apply for a mortgage.
The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan and is based on the size of your down payment. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums.
Remember: without mortgage insurance you may avoid the insurance premium but you'll typically pay much higher interest rates and additional administrative fees. At the end of the day, for the vast majority of borrowers, the cost of CMHC Mortgage Loan Insurance is more than fully offset by the savings achieved.
Table of CMHC Mortgage Loan Insurance Premiums
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Loan Size
(% of Lending Value)
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Single Advance Premium
(% of Loan)
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Up to and including 95%
Traditional Down
Payment Flex Down
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Note: See your lender for premium surcharges and other terms and conditions that apply.
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Mortgage Loan Insurance
Did you know that as a Canadian, you benefit from a housing finance system that is the envy of the world? You don't need to delay buying a home to save more for your down payment.
Mortgage loan insurance from CMHC makes this possible. And when you buy your home sooner, you grow equity faster AND benefit from interest rates that are comparable to someone buying with a 25% down payment. That's what CMHC's Mortgage Loan Insurance can do. It is available in every region of the country.
As with any insurance, there are insurance premiums to be paid. The amount of the premium varies and can range between 0.65% and 2.75% depending upon how much of the purchase price/home value is financed with a mortgage loan.
Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.
Who Needs Mortgage Loan Insurance?
Typically, lenders require mortgage loan insurance for loans made to anyone that wishes to purchase a home with less than 20% of the purchase price. The Canadian Bank Act prohibits most federally regulated lending institutions from providing mortgages without mortgage loan insurance for amounts that exceed 80% of the value of the home or purchases with less than 25% down payment.
Through your lender, GE or CMHC Mortgage Loan Insurance enables you to finance up to 100% of the purchase price of a home. So if the cost of the home was $125,000, you could purchase it with a down payment of just $6,250. CMHC makes that possible!
Use our mortgage calculator to help calculate the maximum house price you can likely afford, the maximum mortgage amount you can likely borrow, and your likely monthly mortgage payments (principal + interest).
To learn more about the process of buying a home, see Buying Tips. It can take the confusion out of the home buying process by helping you understand the various aspects to buying the home you really want.
What is CMHC Mortgage Loan Insurance?
CMHC's Mortgage Loan Insurance is an insurance that covers your lender's risks associated with financial loss that can occur when a homeowner defaults on their mortgage loan and in turn increases your access to mortgage financing and at the most competitive interest rates possible.
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Mortgage Insurance / CMHC or GE
Note: PST is due the date of closing and is not rolled into a mortgage.
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CMHC/GENWORTH premium Calculator
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