CMHC Mortgage Calculator: Estimate Your Premium and Monthly Payment

The CMHC mortgage calculator above gives you a fast, reliable estimate of the mortgage default insurance premium you'll pay on a Canadian home purchase, plus the total monthly payment that comes with it. If your down payment is under 20%, insurance from the Canada Mortgage and Housing Corporation (or a private insurer) isn't optional, so knowing the cost before you shop matters.

Getting an accurate estimate takes under a minute. Here's the walkthrough:

• Enter the home price. Type in the purchase price. Note that mortgage default insurance is unavailable for homes priced at $1.5 million or more, a cap that rose from $1 million on December 15, 2024, per current market data.
• Enter your down payment. This is the number that drives everything. The smaller your down payment, the higher your premium rate, as CMHC itself explains. Minimums start at 5% on homes up to $500,000, then 5% on the first $500,000 plus 10% on the portion above that.
• Set the amortization period. The standard maximum is 25 years, stretching to 30 years only for eligible first-time buyers or new builds.
• Pick your province. Ontario, Quebec, and Manitoba charge provincial sales tax on the premium, and that tax can't be added to the loan; you pay it separately at closing.

The calculator then applies the correct premium tier based on your loan-to-value ratio and shows both the one-time premium and how it changes your monthly payment if you add it to the mortgage principal.

Here's a worked example from CMHC: a $750,000 home with $60,000 down (8%) means a $690,000 mortgage at a 4% premium rate, or $27,600 in insurance. On a $500,000 mortgage, the difference between 5% down and 10% down is real money: $19,000 versus $13,950, a saving of $5,050 for the larger down payment.

Two things worth knowing before you run your own numbers. First, a 10% premium refund is available when the insured home is energy-efficient, so ask about it. Second, while CMHC holds 59% of the market, Sagen and Canada Guaranty are private alternatives with slightly different premium structures, and you can ask your lender about a preferred insurer.

Once you've estimated your premium, get pre-approved with Realtix to see what you actually qualify for and what your monthly payment looks like at today's rates.

When CMHC Insurance Is Required (and When It Isn't)

Most Canadian buyers find out they need mortgage default insurance at the worst possible moment: mid-purchase, when the lender adds a five-figure premium to the deal. A few minutes with a CMHC mortgage calculator before you shop tells you whether that cost applies to you, and roughly how big it will be.

The rule itself is simple. Mortgage default insurance is mandatory whenever your down payment is under 20% and the home you're buying is priced at $1.5 million or less, which is the same as saying your loan-to-value ratio exceeds 80%, per CMHC's own explanation of the program. If you put 20% or more down, no insured mortgage is required. That threshold drives thousands of dollars in either direction, so it's worth planning around.

The minimum down payment itself is tiered by price. According to CMHC's premium calculator guidance:

• 5% down on homes priced up to $500,000
• 5% on the first $500,000 plus 10% on the portion above that, for homes priced between $500,000 and $1.5 million
• 20% minimum down on homes priced at $1.5 million or more, because insured mortgages aren't available above that cap

One recent change matters here. Effective December 15, 2024, the insurable price cap rose from $1 million to $1.5 million, per market data on Canadian default insurance. Buyers in expensive markets like Toronto and Vancouver, previously locked out of high-ratio financing, can now access insured mortgages on homes up to $1.5 million. That means a smaller down payment option exists where it didn't before, though it comes with a premium attached.

How big can that premium get? CMHC's worked example is a $750,000 home with $60,000 down, an 8% down payment. The premium rate lands at 4%, so the insurance costs $27,600 on the $690,000 mortgage. On a $500,000 mortgage, the spread between 5% down and 10% down is $19,000 versus $13,950, a difference of $5,050 for coming up with more cash up front.

Note that CMHC isn't your only insurer. Sagen and Canada Guaranty also provide default insurance, and lenders may prefer one, so premiums and eligibility requirements can vary slightly between the three.

If you're unsure where you fall, run your numbers first. Use the CMHC mortgage calculator above to estimate your insurance premium and total monthly payment, then get pre-approved with Realtix to see what you qualify for.

How CMHC Premiums Are Calculated: The Rate Table Explained

When you start shopping for a home with less than 20% down, the cost of mortgage default insurance becomes a significant line item in your budget. In Canada, the Canada Mortgage and Housing Corporation (CMHC) is the dominant provider, holding 59.0% of the total market, though private insurers Sagen and Canada Guaranty also compete with slightly different rate structures. Understanding how premiums are calculated, specifically how your loan-to-value ratio determines your rate, is the first step in estimating your total costs.

The CMHC premium rate table is tiered by loan-to-value (LTV) ratio, with rates increasing as your down payment gets smaller. Borrowers with a 35% or greater down payment (LTV 65% or less) pay the lowest rate at 0.60%, while those putting down just 5% (LTV 95%) face the highest rate at 4.50%. Specific bands include 1.25% for LTV up to 80%, 1.80% for LTV up to 85%, and 2.40% for LTV up to 90%. For example, on a $500,000 mortgage, a 5% down payment results in a 4.00% premium costing $19,000, whereas a 10% down payment drops the rate to 2.80%, reducing the cost to $13,950.

Your down payment size directly dictates which tier you fall into. The minimum down payment rules require 5% for homes $500,000 or less, and a combination of 5% on the first $500,000 plus 10% on the portion above that for homes priced between $500,000 and $1.5 million. Homes priced at $1.5 million or more require a minimum 20% down payment and are not eligible for mortgage default insurance. It is important to note that while avoiding the insurance premium is possible with 20% down, borrowers typically face higher interest rates in exchange.

Provincial sales tax is an additional cost that varies by location. In Ontario, Quebec, and Manitoba, the CMHC premium is subject to provincial sales tax, which cannot be added to the loan amount and must be paid separately at closing. Borrowers in these provinces should budget an estimated 8-10% additional on top of the calculated premium for tax. For example, on a $750,000 home with an 8% down payment ($60,000), the base premium works out to $27,600. If purchasing in Ontario, Quebec, or Manitoba, the provincial sales tax would be due separately, increasing the total upfront cash required.

If you are purchasing or renovating an energy-efficient home, you may be eligible for a 10% premium refund. This refund applies when the mortgage loan insurance finances a qualifying energy-efficient property, effectively reducing the total insurance cost. Additionally, the market consists of three primary insurers: CMHC with its 59.0% market share, Sagen at 24.1%, and Canada Guaranty at 16.9%. While rates vary slightly between providers, the CMHC rate table remains the standard benchmark, and your lender can advise if a different insurer is available for your specific scenario.

Eligibility for mortgage default insurance is governed by specific underwriting guidelines. Borrowers generally need a minimum credit score of 600, with gross debt service (GDS) ratio capped at 39% and total debt service (TDS) ratio at 44%. The standard maximum amortization period is 25 years, although eligible first-time buyers or those purchasing new builds may qualify for an extension up to 30 years. These factors, combined with your chosen down payment, will determine not only your insurance premium but also your overall borrowing capacity.

Use the CMHC mortgage calculator above to estimate your insurance premium and total monthly payment, then get pre-approved with Realtix to see what you qualify for.

How Your Down Payment Changes the Cost: Worked Examples

A few percentage points on your down payment can swing your insurance premium by thousands of dollars, so it pays to run the numbers before you commit. Here's what a $500,000 purchase looks like at three common down payment levels.

5% down: the maximum premium. With $25,000 down, you're borrowing $475,000 at a 95% loan-to-value ratio, which triggers the top CMHC premium rate of 4.00%. That's a $19,000 premium added to your mortgage. According to current premium data, this is the most expensive tier, and it's where most minimum-down buyers land.

10% down: a meaningful drop. Putting $50,000 down brings your loan-to-value to 90% and the premium rate down to 2.80%, or $13,950 on the resulting $450,000 loan. That extra $25,000 of down payment saves you $5,050 in insurance, and it also shrinks your principal, so you save twice.

20% down: no premium, but a catch. At $100,000 down, mortgage default insurance isn't required at all, so you avoid the roughly $19,000 charge entirely. The trade-off: insured mortgages typically carry lower interest rates, so uninsured borrowers often pay more over the life of the loan. As Canadian mortgage lawyers explain, without insurance you may avoid the premium but you'll typically pay higher rates and administrative fees, and for most borrowers the insurance cost is more than fully offset by the savings.

A few things to keep in mind as you compare scenarios:

• Premiums in Ontario, Quebec, and Manitoba attract provincial sales tax, which must be paid upfront and can't be rolled into the mortgage.
• A 10% premium refund applies when the home qualifies as energy-efficient, so ask about it if you're buying or building green.
• Canada has three insurers: CMHC, Sagen, and Canada Guaranty. Their requirements differ, so ask your lender about their preferred insurer.

One more wrinkle: stretching your amortization past 25 years (up to 30 for eligible first-time buyers or new builds) can add a surcharge to the premium, so factor that into your calculator inputs too.

The practical takeaway is that rushing to hit 20% down isn't automatically the winning move. A buyer who waits years to save the full amount may lose more to rising prices and rates than the premium would have cost. Run your own numbers with the CMHC mortgage calculator above to see your premium and monthly payment side by side, then get pre-approved with Realtix to confirm what you actually qualify for. Sometimes the "expensive" insurance is the cheaper path into the market.

FAQs About CMHC Mortgage Insurance

Buying a home in Canada often means navigating the complexities of mortgage default insurance, and the CMHC calculator is the go-to tool for estimating these costs. This insurance, officially known as mortgage default insurance, is required by law for any down payment under 20% on homes priced at or under $1.5 million. According to CMHC data, the premium rate is tiered based on your loan-to-value ratio, ranging from as low as 0.6% for those with a 35% down payment up to 4.5% for borrowers putting down only 5%. Importantly, the premium can be paid as a lump sum upfront or added to your mortgage principal, which affects your total borrowing cost. Borrowers in Manitoba, Ontario, and Quebec should also budget for provincial sales tax, which cannot be added to the loan amount and must be paid separately at closing.

Using the CMHC mortgage calculator is straightforward: you input your home price and down payment amount, and the tool outputs your premium rate and total premium cost. For example, on a $500,000 mortgage, a 5% down payment results in a premium cost of $19,000, while a 10% down payment reduces that cost to $13,950. A 20% down payment eliminates the premium entirely, though borrowers should note that interest rates may be higher without the insurance backing. Additionally, a 10% premium refund is available for energy-efficient homes, providing a meaningful incentive for green renovations or purchases. The Canadian mortgage insurance market consists of three primary providers, CMHC, Sagen, and Canada Guaranty, though CMHC remains the dominant player with a 59.0% market share across all segments.

How much is CMHC insurance? The cost depends entirely on your down payment size and home price. When is CMHC insurance required? It is mandatory whenever your down payment is less than 20% and the home price is $1.5 million or under. Can you add the premium to your mortgage? Yes, you can typically roll the premium into your mortgage principal, though this increases your total loan amount and monthly payment. Can you avoid CMHC insurance? The only way to avoid the premium is to have a down payment of 20% or more, or purchase a home above the $1.5 million insurance cap.

Use the CMHC mortgage calculator above to estimate your insurance premium and total monthly payment, then get pre-approved with Realtix to see what you qualify for.