CMHC Insurance Cost Calculator
Calculate mortgage default insurance premiums for a down payment under 20%, including provincial sales tax where it applies.
Your CMHC Insurance Cost
Total Insurance Cost
$18,144
What Is the CMHC Insurance Cost Calculator?
In Canada, a down payment under 20% requires mortgage default insurance (commonly called CMHC insurance, after the largest provider, Canada Mortgage and Housing Corporation) on properties priced under $1,500,000. The premium is calculated as a percentage of your mortgage amount, based on your loan-to-value ratio — the smaller your down payment, the higher the rate. This calculator computes your exact premium, plus any provincial sales tax that applies on top of it.
Down payment minimums also work in two tiers: 5% on the first $500,000 of purchase price, and 10% on any portion between $500,000 and $1,500,000. Above $1,500,000, a minimum 20% down payment is required and the property isn't eligible for insurance at all — this calculator checks your inputs against both of these rules.
CMHC Insurance Cost Calculator Formula
Loan-to-Value = Mortgage Amount ÷ Purchase Price
Premium = Mortgage Amount × Rate (by LTV bracket)
How Is the CMHC Insurance Cost Calculator Calculated?
The premium rate is set by a bracket table based on loan-to-value ratio: 0.60% at 65% LTV or less, rising through 1.70%, 2.40%, 2.80%, 3.10%, up to 4.00% for a loan-to-value between 90.01% and 95% (the maximum insurable, corresponding to a 5% down payment). The premium itself is calculated on the mortgage amount (purchase price minus down payment), and by default is added directly to your mortgage principal and amortized over the life of the loan, rather than paid upfront in cash.
Provincial sales tax on the premium works differently: in Ontario, Quebec, and Saskatchewan, PST applies to the premium itself and must be paid in cash at closing — it cannot be added to the mortgage. British Columbia and Alberta don't charge PST on the premium at all, which this calculator reflects for the three provinces it covers.
CMHC Insurance Cost Calculator Example
A $450,000 home in Ontario with a $30,000 down payment (about 6.7%, loan-to-value 93.3%): the premium rate is 4.00%, giving a premium of $16,800, plus $1,344 in Ontario PST paid at closing — a total insurance cost of about $18,144.
A $600,000 home in British Columbia with a $60,000 (10%) down payment, loan-to-value exactly 90%: the premium rate is 3.10%, giving a premium of $16,740 — no PST applies in British Columbia.
A $350,000 home in Alberta with a $52,500 (15%) down payment, loan-to-value 85%: the premium rate is 2.80%, giving a premium of $8,330 — again, no PST applies in Alberta.
How to Use the CMHC Insurance Cost Calculator
Step 1
Enter your intended purchase price.
Step 2
Enter your planned down payment amount.
Step 3
Select your province, since Ontario adds PST on the premium while British Columbia and Alberta don't.
Step 4
Review your premium, loan-to-value ratio, and total mortgage cost with the premium added.
Benefits
- Uses the exact current CMHC premium rate table, verified directly against cmhc-schl.gc.ca.
- Applies the correct two-tier minimum down payment rule and $1,500,000 insured mortgage price cap.
- Correctly reflects that Ontario charges PST on the premium while British Columbia and Alberta don't.
- Flags ineligible scenarios (price at or above $1,500,000, or down payment below the minimum) clearly.
- Free, instant, and runs entirely in your browser.
Common CMHC Insurance Cost Calculator Scenarios
Scenario 1
Budgeting the true cost of a home purchase with a down payment under 20%.
Scenario 2
Comparing insurance costs across different down payment amounts for the same purchase price.
Scenario 3
Checking whether a specific purchase price and down payment meets minimum down payment rules.
Scenario 4
Understanding how much more mortgage principal the insurance premium adds when financed.
Scenario 5
Planning cash needed at closing for Ontario buyers, where PST must be paid upfront rather than financed.
Understanding Your Result
The insurance premium shown is typically added directly to your mortgage principal, meaning you'll pay interest on it over your amortization period, not just the premium amount itself — the total mortgage with premium added is what your actual amortization schedule would be calculated from.
If you're buying in Ontario, Quebec, or Saskatchewan, remember that the PST portion specifically cannot be financed — it must be paid in cash at closing, in addition to your down payment and other closing costs, which is worth budgeting for separately.
Tips
- A larger down payment doesn't just reduce your premium rate — crossing certain loan-to-value thresholds (like from 90.01% down to exactly 90%) can meaningfully drop your rate bracket, so small down payment increases near a threshold can be disproportionately valuable.
- If you're buying in Ontario, budget for the PST on the premium as a separate cash cost at closing — it's easy to overlook since the premium itself is usually financed.
- The $1,500,000 insured mortgage price cap is relatively recent (raised from $1,000,000 in December 2024) — if you're working from older information, double-check you're using the current threshold.
- A 20% down payment avoids mortgage default insurance entirely, which can be worth targeting if you're close to that threshold, since the premium (and any PST) represents a real, avoidable cost.
- Self-employed borrowers or those with non-traditional down payment sources may face a higher premium rate (4.50% instead of 4.00%) at the 90.01-95% loan-to-value tier — this calculator uses the standard traditional-down-payment rate.
Common Mistakes
- Forgetting that Ontario, Quebec, and Saskatchewan charge PST on the premium as a separate cash cost that can't be added to the mortgage.
- Assuming the insurance premium is a one-time cash cost, when it's typically added to and amortized within the mortgage itself.
- Not checking the two-tier down payment minimum correctly for purchase prices above $500,000.
- Using an outdated $1,000,000 price cap instead of the current $1,500,000 threshold.
- Assuming a 15% or 18% down payment is "close enough" to 20% to avoid insurance, when any down payment under 20% still requires it.
Frequently Asked Questions
What is CMHC insurance?
Mortgage default insurance required for Canadian home purchases with a down payment under 20%, protecting the lender (not the borrower) if the loan defaults. CMHC is the largest provider, alongside Sagen and Canada Guaranty, all charging similar premium rates.
How much is the minimum down payment in Canada?
5% on the first $500,000 of purchase price, plus 10% on any portion between $500,000 and $1,500,000. Above $1,500,000, a minimum 20% down payment is required and the property isn't eligible for mortgage default insurance.
Do I pay the insurance premium in cash?
Usually no — the premium is typically added directly to your mortgage principal and amortized over your loan term. However, any applicable provincial sales tax on the premium (in Ontario, Quebec, and Saskatchewan) must be paid in cash at closing.
Which provinces charge PST on the insurance premium?
Ontario (8%), Quebec (9.975%), and Saskatchewan (6%) all charge provincial sales tax on the premium itself. British Columbia and Alberta don't charge PST on mortgage default insurance premiums.
Can I avoid mortgage default insurance entirely?
Yes — putting down 20% or more of the purchase price avoids the requirement entirely, since insurance is only mandatory for down payments below that threshold.
What happened to the price cap for insured mortgages?
It was raised from $1,000,000 to $1,500,000 effective December 15, 2024, allowing more buyers in higher-priced markets to qualify for an insured mortgage with a down payment under 20%.
Does a higher purchase price always mean a higher premium?
Not necessarily in isolation — the premium is based on your loan-to-value ratio (how much you're borrowing relative to the price), not the price alone, so a larger down payment percentage can offset a higher purchase price.
What is loan-to-value (LTV)?
The ratio of your mortgage amount to the purchase price, expressed as a percentage — a $400,000 mortgage on a $500,000 home is an 80% loan-to-value, corresponding to a 20% down payment.
Is the premium rate the same for all insurers (CMHC, Sagen, Canada Guaranty)?
The three major Canadian mortgage default insurers generally use very similar, closely aligned rate tables, though it's worth confirming the specific rate with your lender since minor differences can exist.
Does a non-traditional down payment (like a gift or borrowed funds) change the premium?
At the highest loan-to-value tier (90.01-95%), a non-traditional down payment source can result in a higher premium rate (4.50% instead of 4.00%) — this calculator uses the standard traditional-down-payment rate.
Does this calculator apply outside Ontario, British Columbia, and Alberta?
The premium rate table itself is federal and applies Canada-wide, but this calculator's PST handling is specific to Ontario, British Columbia, and Alberta — Quebec and Saskatchewan also charge PST on the premium but aren't included in this calculator's province selector.
Can I share this insurance cost result as an image?
Yes — tap Share and, on supported devices, your result is shared as a branded image card, not just a text link.
References
Important Information
This calculator provides estimates for informational purposes only and is not financial or mortgage advice. Uses the confirmed current CMHC premium rate table, minimum down payment tiers, and $1,500,000 insured mortgage price cap; PST handling covers Ontario, British Columbia, and Alberta specifically. Does not model non-traditional down payment premium surcharges or extended amortization surcharges. Confirm your specific premium and closing costs with your lender or mortgage broker.
Last updated: August 2026