CMHC Mortgage Insurance Calculator
On a down payment under 20%, mortgage default insurance is required. See roughly what that premium adds to the loan.
What this premium actually is
Mortgage default insurance (through CMHC or a private insurer) protects the lender, not the buyer, when a down payment is under 20%. The premium is a percentage of the mortgage amount, sliding from around 2.8% down to 0.6% as the down payment rises toward 20%, and it is typically added to the mortgage rather than paid upfront. This calculator gives a directional estimate; the exact premium and any provincial sales tax on it depend on the lender and the final numbers at approval.
Common questions
Can I avoid this premium?+
Yes, putting down 20% or more removes the requirement entirely, since the mortgage is then considered conventional rather than high-ratio.
Is the premium paid in cash?+
Usually not. It is typically added to the mortgage principal and amortized along with the rest of the loan, though some provinces charge sales tax on it upfront.
Insurance premium sorted.
There are ways to structure a file that change this number. Worth a look at yours.
