Question 1

Do I need CMHC mortgage insurance?

Accepted Answer

When your down payment is less than 20% of the purchase price, mortgage loan insurance from the Canada Mortgage and Housing Corporation (CMHC) is required in Canada. The premium is calculated as a percentage of your loan amount and added to your mortgage.

Question 2

How much is the CMHC premium?

Accepted Answer

The CMHC premium is based on your loan-to-value (LTV) ratio. It ranges from 0.6% of your loan amount for loans up to 65% LTV, up to 4.4% for loans above 90% LTV. This calculator estimates the premium for your purchase price and down payment.

Question 3

What is the minimum down payment required to buy a home in Canada?

Accepted Answer

The minimum down payment is 5% of the purchase price. For homes over $500,000, the minimum is 5% on the first $500,000 and 10% on the portion above $500,000. You must have at least a 5% down payment to qualify for CMHC-insured financing.

Question 4

Is the CMHC premium added to my mortgage?

Accepted Answer

Yes. The CMHC premium is added to your loan amount, so your total mortgage equals your loan amount plus the insurance premium, which you pay off over the life of the mortgage.

CMHC Insurance Calculator