CMHC Insurance Calculator

CMHC mortgage default insurance is a requirement for any home purchase in Canada where the down payment is less than 20% of the purchase price. Also known as mortgage loan insurance, it protects the lender — not you — in case you default on your mortgage payments. While you pay the premium, the coverage benefits the lender by reducing their risk, which in turn allows Canadians to buy homes with as little as 5% down.

How CMHC Premiums Are Calculated (2025 Rates)

CMHC premiums are calculated as a percentage of your mortgage amount (not the home price). The rate depends on your down payment percentage: 5.00–9.99% down carries a 4.0% premium, 10.00–14.99% down is 3.1%, 15.00–19.99% down is 2.8%, and 20% or more requires no insurance. For example, on a $700,000 home with 10% down ($70,000), your mortgage is $630,000 and the CMHC premium is $19,530 (3.1% of $630,000).

CMHC vs Sagen vs Canada Guaranty

Canada has three mortgage default insurers: CMHC (a federal Crown corporation), Sagen (formerly Genworth Canada, privately owned), and Canada Guaranty (also private). All three are legally required to offer comparable rates and coverage. Your lender chooses which insurer to use, and the cost to you is effectively the same regardless. CMHC is the largest and most well-known, but all three provide equivalent protection.

The $1.5 Million Insured Cap

Effective 2024, CMHC only insures mortgages on homes valued at $1.5 million or less. This means if you're buying a home above $1.5 million, you must put at least 20% down regardless — there is no insured mortgage option. For homes between $1M and $1.5M, CMHC insurance is available but the 20% rule on the portion over $1M means you still need substantial cash. This policy change has affected buyers in high-priced markets like Vancouver and Toronto.

Paying Upfront vs. Adding to Your Mortgage

You have two options for paying the CMHC premium: upfront in cash or added to your mortgage balance. Over 90% of borrowers choose to add it because it preserves cash for other closing costs. However, this means you pay interest on the premium amount for the entire amortization period. On a $20,000 premium at 5% over 25 years, the total interest cost is approximately $15,000. Paying upfront avoids this extra cost but requires more cash at closing.

Kraft Mortgages has been helping Canadian homebuyers navigate CMHC requirements for over 23 years. With $2 billion in funded mortgages, we understand how to structure your deal to minimize insurance costs. Call 604-593-1550 or visit us at #301 - 1688 152nd Street, Surrey, BC.