FinviloCMHC mortgage insurance: down payments and premiums in Canada
If your down payment is under 20% of the purchase price, the mortgage needs default insurance from CMHC, Sagen or Canada Guaranty. The premium is a percentage of the loan, from 2.80% to 4.00% depending on your down payment, and it is usually added to the mortgage balance.
Minimum down payment
The minimum depends on the purchase price.
- Up to CAD 500,000: 5% of the price.
- CAD 500,000 to CAD 1,499,999: 5% of the first CAD 500,000 plus 10% of the remainder.
- CAD 1.5 million or more: 20%, and insurance is not available.
Premium rates
CMHC's standard premiums, as a share of the loan, are 4.00% with 5% to 9.99% down, 3.10% with 10% to 14.99% down and 2.80% with 15% to 19.99% down. In Ontario, Quebec and Saskatchewan, provincial sales tax applies to the premium and must be paid in cash at closing rather than added to the loan.
Amortization limits
Insured mortgages are generally limited to 25 years. Since December 2024, first-time buyers and buyers of newly built homes can qualify for an insured 30-year amortization.
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Frequently asked questions
- Is mortgage default insurance the same as mortgage life insurance?
- No. Default insurance protects the lender if you stop paying. Mortgage life or creditor insurance is optional coverage for you or your family.
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Official sources
General information only, not personalized financial, tax or legal advice. Rules change; confirm current details with the source.