CMHC Insurance Calculator Canada
This CMHC insurance calculator estimates your mortgage default insurance premium in Canada when you put down under 20%, and your total mortgage with it.
What it does
The CMHC Calculator works out the mortgage default insurance premium required in Canada when your down payment is under 20%, and the total mortgage including the premium.
Data sources & parameters
The figures below drive this calculator. We keep them aligned with the latest official guidance, and each result recalculates automatically whenever a value changes.
| Parameter | Value | Source | Last updated |
|---|---|---|---|
| Max home price eligible for CMHC | 1,500,000 | cmhc-schl.gc.ca | — |
| CMHC mortgage loan insurance premium on the total loan, as [loan_to_value_ceiling, premium_rate] | Rate schedule | cmhc-schl.gc.ca | Effective 2025-01-01Re-sourced from ratehub.ca to the CMHC premium schedule; every band re-checked, values unchanged. The same rates apply at CMHC, Sagen and Canada Guaranty, and a 0.20% surcharge applies to eligible 30-year amortizations. |
| Loan-to-value above which a residential mortgage must be insured, so 20% down or more needs no default insurance | 0.8 | laws-lois.justice.gc.ca | Effective 2026-01-01Seeded from Bank Act s. 418(1) and (2)(b); previously hardcoded as 0.20 down payment in cmhc-calculator-ca |
We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.
The formula
Premium = loan × CMHC rate for the LVR band; total mortgage = loan + premium
How it works
The premium is a percentage of the loan that depends on the loan-to-value ratio; it is added to the mortgage.
Where it is used
- Budgeting mortgage insurance costs
- Seeing how a bigger down payment cuts the premium
- Working out the total mortgage
Worked example
Buying a CA$500,000.00 home with a CA$50,000.00 (10%) down payment, the loan is …, the CMHC premium …, and the total mortgage ….
What the CMHC insurance calculator does
The calculator works out the mortgage default insurance premium required in Canada when your down payment is under 20%, and your total mortgage once the premium is added. For many first-time buyers this premium is unavoidable, and knowing it in advance helps with budgeting.
What mortgage default insurance is
Mortgage default insurance protects the lender, not the borrower, if a homeowner cannot keep up with payments. In Canada it is generally required when the down payment is less than 20% of the purchase price, and it lets buyers enter the market with a smaller down payment than would otherwise be possible.
The premium is a percentage of the loan amount, and the percentage depends on how much of the home’s value you are financing.
Saving a full 20% can take years, and prices may rise faster than savings grow. Default insurance lets qualified buyers buy sooner with a smaller deposit, at the cost of the premium. That trade-off is central to deciding how large a down payment to aim for.
How the premium is calculated
The premium rate depends on your loan-to-value ratio, the loan relative to the home price. The less you put down, the higher the ratio and the rate. The current bands are:
- Up to 65% loan-to-value: 0.60%
- Up to 75%: 1.70%
- Up to 80%: 2.40%
- Up to 85%: 2.80%
- Up to 90%: 3.10%
- Up to 95%: 4.00%
The rate is applied to the loan amount. A bigger down payment therefore works twice: it reduces the loan the premium is charged on and the rate applied to it.
How to use the calculator
- Enter the home purchase price.
- Enter your down payment.
- The calculator finds your loan-to-value ratio and the matching premium rate.
- It shows the premium, your total mortgage including the premium, and the monthly payment at the rate and amortization you choose.
Run it early in your planning, before you settle on a particular home. Seeing how the premium changes across prices and down payments gives you a realistic idea of what you can afford.
Why the down payment matters so much
Increasing the down payment, even while staying below 20%, can move you into a lower premium band and reduces the loan the premium is charged on. Buyers close to a band boundary can save noticeably by putting a little more down, and the calculator lets you test amounts to see where those boundaries fall for your purchase.
A larger down payment also shrinks the loan itself, lowering your regular payments and the interest over the amortization. So putting more down gives you a lower premium rate, a smaller loan for the premium to apply to, and less interest over the life of the mortgage.
The long-term cost of adding the premium
The premium is usually added to the mortgage rather than paid upfront. That makes closing easier, but you pay interest on the premium for the life of the loan. The total mortgage including the premium is the figure that actually drives your payments.
Planning your purchase
- How much to save. Knowing where the premium bands fall helps you set a down payment target.
- What you can afford. The total mortgage, not just the price, sets your ongoing payments.
- Whether to wait. Reaching 20% generally avoids the premium entirely, which may justify a short delay for some buyers.
Provincial sales tax on the premium
The premium can be added to the mortgage, but in Ontario, Quebec and Saskatchewan the provincial sales tax on it cannot. It must be paid in cash at closing. Two buyers with identical mortgages can therefore face different upfront costs depending on where they buy. The calculator shows the premium and the total mortgage, so set aside extra closing funds for the tax if your province charges it. Your lawyer or notary will include it in the closing statement.
A worked example
With the default inputs, a $500,000 home with $25,000 down (5%) leaves a $475,000 loan at 95% loan-to-value. The 4.00% premium is $19,000, the total mortgage is $494,000, and at 5% over 25 years the payment is about $2,873 a month.
Put down $50,000 (10%) instead and the loan is $450,000 at 90% loan-to-value; the 3.10% premium is $13,950. Put down $75,000 (15%) and the loan falls to $425,000 at 85%, where the 2.80% premium is $11,900. Going from 10% to 15% down saves $2,050 of premium, on top of the $25,000 less you borrow.
Getting the most from the calculator
The most common mistake is treating the purchase price as the whole cost of buying. Besides the premium, budget for the sales tax on it where it applies, land transfer taxes, and legal and inspection fees, none of which this tool models. The premium is not refundable, so a down payment that avoids it entirely saves the full amount. Default insurance in Canada is offered by CMHC and by private insurers, and premiums can differ slightly between them, so treat the figure as representative. Find the down payment that moves you into a cheaper band, then weigh a short delay to save more against the risk of prices rising meanwhile.
Reading your result
The premium rates are kept current, but your final premium depends on your lender, the purchase details and the eligibility rules for insured mortgages. Use the result to compare down payments and prices, and confirm the details with your lender or a licensed mortgage professional before you proceed.
This article is general information only and is not financial advice.
About This CMHC Insurance Calculator
Use this CMHC insurance calculator to get an instant, accurate estimate. The figures follow official CMHC guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.
Tax year 2026
Frequently asked questions
How does the CMHC insurance calculator work?
When is CMHC insurance required?
How can I reduce the premium?
Is the premium paid upfront?
Does a 20% down payment avoid it entirely?
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