CMHC Insurance Calculator: Premium, Provincial Tax and Monthly Payment
Mortgage Tools
CMHC Insurance Calculator
This CMHC insurance calculator returns your Canada Mortgage and Housing Corporation (CMHC) premium, the provincial tax due at closing, your total insured mortgage, and your monthly payment. Four inputs drive it: price, down payment, rate, and amortization. You’ll see exactly what mortgage default insurance adds to a Canadian home bought with under 20% down.
Your CMHC Insurance Estimate
Your loan-to-value (LTV) ratio is 90%, so your premium rate is 3.10%. The premium of $13,950.00 is added to your loan, making your total mortgage $463,950.00. Pay $1,116.00 provincial tax at closing. Your monthly payment is $2,567.84.
The premium adds about $77.21 to each payment.
Estimate only. Your lender and insurer confirm the final premium.
How to Use the CMHC Insurance Calculator
To use the CMHC insurance calculator, follow these 6 steps:
- Enter the purchase price in Canadian dollars (CAD).
- Type your down payment as a dollar amount or a percentage.
- Select the down payment source: savings, a First Home Savings Account (FHSA), and the RRSP Home Buyers’ Plan (HBP) all count as traditional, while borrowed funds count as non-traditional.
- Add your interest rate and amortization period.
- Choose your payment frequency and province.
- Click “Calculate CMHC Premium” to see the premium, the tax, the total mortgage, and your payment.
How the CMHC Insurance Calculator Works
The CMHC mortgage insurance calculator multiplies your loan amount by a premium rate set by your loan-to-value ratio, adds that premium to the loan, and calculates payments using semi-annual compounding. The formula has 4 steps:
- LTV = (Purchase price − Down payment) ÷ Purchase price
- Premium = Loan × Premium rate (+0.20% for a 30-year amortization)
- Total mortgage = Loan + Premium
- Payment = P × r ÷ (1 − (1 + r)−n), where r = (1 + annual rate ÷ 2)1/6 − 1 for monthly payments
Canada’s Interest Act requires semi-annual compounding on fixed-rate mortgages. That rule matters. At an identical 4.50% rate, the CMHC insurance calculator returns a slightly lower payment than a US monthly mortgage payment calculator would show, because interest builds twice a year instead of twelve times.
CMHC Premium Rate Table
CMHC premiums run from 0.60% to 4.00% of the loan, or 4.50% with a non-traditional down payment.
| LTV ratio | Down payment | Premium (% of loan) |
|---|---|---|
| Up to 65% | 35% or more | 0.60% |
| 65.01% to 75% | 25% to 34.99% | 1.70% |
| 75.01% to 80% | 20% to 24.99% | 2.40% |
| 80.01% to 85% | 15% to 19.99% | 2.80% |
| 85.01% to 90% | 10% to 14.99% | 3.10% |
| 90.01% to 95% | 5% to 9.99% | 4.00% (4.50% non-traditional) |
Source: CMHC mortgage loan insurance premium schedule.
Worked Example: $500,000 Home with 10% Down
An Ontario buyer putting 10% down on a $500,000 home pays a $13,950 premium and $1,116 in tax at closing. The inputs: a $500,000 purchase, a $50,000 down payment, a 4.50% fixed rate, and a 25-year amortization.
- Loan: $450,000 (LTV 90%, rate 3.10%)
- Premium: $450,000 × 3.10% = $13,950
- Total mortgage: $463,950
- Ontario tax due at closing: $13,950 × 8% = $1,116
- Monthly payment: about $2,567.84, of which the premium accounts for roughly $77
CMHC Premiums at Every Down Payment Tier
On a $500,000 home, the CMHC premium ranges from $19,000 at 5% down to $0 at 20% down.
| Down payment | Loan | LTV | Rate | Premium | Ontario tax (8%) |
|---|---|---|---|---|---|
| $25,000 (5%) | $475,000 | 95% | 4.00% | $19,000 | $1,520 |
| $50,000 (10%) | $450,000 | 90% | 3.10% | $13,950 | $1,116 |
| $75,000 (15%) | $425,000 | 85% | 2.80% | $11,900 | $952 |
| $100,000 (20%) | $400,000 | 80% | None required | $0 | $0 |
Going from 5% to 10% down trims the premium by $5,050, the biggest cut between any 2 insured tiers. Crossing 20% is different. The $11,900 charge at 15% down vanishes entirely, so run your own price through the CMHC insurance calculator before settling on a deposit.
25-Year vs. 30-Year Amortization: Surcharge and Total Interest
A 30-year amortization lowers the monthly payment by about $224 but adds roughly $72,500 in interest on the $500,000 example.
| Factor | 25 years | 30 years |
|---|---|---|
| Premium rate | 3.10% | 3.30% |
| Premium | $13,950 | $14,850 |
| Total mortgage | $463,950 | $464,850 |
| Monthly payment | $2,567.84 | $2,343.85 |
| Total interest | about $306,400 | about $378,900 |
Two groups qualify for a 30-year insured amortization: first-time homebuyers and buyers of newly built homes. Everyone else gets 25. For a clear view of how prepayments shrink either schedule, pair the CMHC insurance calculator with a mortgage payoff calculator and compare the two payoff dates side by side.
Minimum Down Payment and the $1.5 Million Price Cap
CMHC insurance covers homes priced below $1.5 million, with a minimum down payment of 5% on the first $500,000 and 10% on the remainder. That ceiling sat at $1 million until December 15, 2024, when the Department of Finance Canada lifted it.
| Purchase price | Minimum down payment | Premium at minimum |
|---|---|---|
| $400,000 | $20,000 (5%) | $15,200 |
| $750,000 | $50,000 (6.67%) | $28,000 |
| $1,000,000 | $75,000 (7.5%) | $37,000 |
| $1,500,000 or more | 20% | Not insurable |
Insurance doesn’t change how you qualify. Every insured borrower still passes the federal stress test, and lenders apply the Office of the Superintendent of Financial Institutions (OSFI) Guideline B-20 underwriting rules, with Gross Debt Service (GDS) capped at 39% and Total Debt Service (TDS) at 44%.
CMHC vs. Sagen vs. Canada Guaranty vs. US PMI
Canada has 3 mortgage default insurers with nearly identical premiums, and your lender chooses the insurer.
| Feature | CMHC | Sagen | Canada Guaranty | US PMI |
|---|---|---|---|---|
| Ownership | Crown corporation | Private | Private | Private |
| Government backing | 100% | 90% | 90% | None |
| Premium structure | One-time, added to loan | One-time | One-time | Monthly, usually 0.3% to 1.5% of the loan per year |
| Cancellation | Never | Never | Never | At 20% equity on request, automatic at 22% |
For US readers, Federal Housing Administration (FHA) loans are the nearer match. They charge a 1.75% upfront premium plus an annual premium, a structure that sits closer to the CMHC model than conventional private mortgage insurance (PMI) does.
Should You Pay the Premium or Save to 20% Down?
Yes, paying the premium makes sense if home prices rise faster than you can save. Picture a $500,000 home climbing 3% a year. Twelve months later the home costs $515,000 and needs $103,000 for 20% down, and closing that $75,000 to $78,000 gap takes most savers longer than prices allow. The $19,000 premium buys earlier ownership.
How to Reduce Your CMHC Premium
To reduce your CMHC premium, test these 4 methods in the CMHC insurance premium calculator:
- Increase your down payment to the next tier, such as 10% instead of 9.5%.
- Choose a 25-year amortization to avoid the 0.20% surcharge.
- Apply for CMHC Eco Plus, which refunds 25% of the premium on newly built energy-efficient homes.
- Port your mortgage when you move, which avoids a full new premium.
FAQs
Is CMHC insurance mandatory with less than 20% down?
Yes. Federally regulated lenders can’t issue a Canadian mortgage with under 20% down unless it’s insured, which puts a premium on every high-ratio purchase.
Can I add the CMHC premium to my mortgage?
Yes. Your lender rolls the premium into the loan balance and spreads the cost across your amortization. Provincial tax on that premium works differently: you pay it in cash.
Who pays the provincial tax on the CMHC premium?
Buyers in Ontario (8%), Quebec (9%), and Saskatchewan (6%) pay this tax at closing. A lawyer or notary collects the money, and no lender will finance that amount.
Can Americans get a CMHC-insured mortgage?
Yes, but only with Canadian permanent residency or a valid work permit. Most foreign nationals can’t buy Canadian residential property until January 1, 2027, under the federal ban on non-Canadian purchases.
What happens to my CMHC premium if I move?
Your existing insurance travels with you when your lender approves a port to the new home. On any extra borrowing, you’ll owe a blended premium instead of a full new one.
Sources: CMHC premium rates, Department of Finance Canada mortgage reforms (December 15, 2024), CMHC Eco Plus. Figures checked November 2026.
Johnson
Johnson leads real estate content at Civic Homes, covering home buying, selling, mortgages, renting, and market trends across Canada. He researches provincial rules, mortgage regulations, and city-by-city housing data to explain the Canadian market in plain, practical terms. His guides help buyers, sellers, renters, and investors make smarter housing decisions.
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