CMHC Mortgage Insurance 2025: Rates, Calculator & Complete Guide

Everything you need to know about mortgage insurance requirements, costs, and eligibility in Canada

Last updated: 6/23/2025 | Published: 6/23/2025

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What is CMHC Insurance?

CMHC (Canada Mortgage and Housing Corporation) insurance is mortgage loan insurance that protects lenders against payment default. When you have less than a 20% down payment on a home purchase in Canada, you're required to obtain mortgage insurance.

Mortgage Insurance Providers in Canada

While CMHC is the most well-known provider, there are three companies offering mortgage default insurance in Canada:

  • CMHC (Canada Mortgage and Housing Corporation)
  • Sagen (formerly Genworth Canada)
  • Canada Guaranty

Who is Eligible for CMHC Insurance?

Key Eligibility Requirements

Down Payment

Minimum 5% down payment required on the first $500,000 of the purchase price and 10% on the remainder

Property Price

Maximum purchase price of $1,500,000

Amortization

Maximum 25-year amortization period (or up to 30-year with CMHC Home Start)[1]

Note: 30-year amortization incurs a 0.20% premium surcharge (20 basis points)

Credit Score

Generally requires a minimum credit score of 600[2]

Debt Service Ratios

Must meet GDS/TDS ratio requirements[3][4]

Mortgage loan insurance is mandatory for all home purchases with less than 20% down payment in Canada. This requirement applies to both first-time homebuyers and repeat buyers across Canada.[5]

How CMHC Insurance is Calculated

CMHC insurance premiums are calculated based on your Loan-to-Value (LTV) ratio. The LTV ratio is the percentage of the home's value that you're borrowing.

Calculation Formula

LTV Ratio = (Mortgage Amount ÷ Purchase Price) × 100

Insurance Premium = Mortgage Amount × Premium Rate

Current CMHC Premium Rates (2025)

Loan-to-Value RatioPremium on Total LoanPremium on Increase (Portability)
Up to 65%0.60%0.60%
65.01% to 75%1.70%5.90%
75.01% to 80%2.40%6.05%
80.01% to 85%2.80%6.20%
85.01% to 90%3.10%6.25%
90.01% to 95%4.00%6.30%
90.01% to 95% (non-traditional)4.50%6.60%

* Non-traditional down payment refers to borrowed funds or gifts from non-immediate family members

CMHC Insurance Cost Examples

Example 1: First-Time Buyer

Purchase Price: $500,000

Down Payment: $25,000 (5%)

Mortgage Amount: $475,000

CMHC Rate: 4.00%

CMHC Premium: $19,000

Total Mortgage: $494,000

Ontario PST (8%): $1,520

Example 2: Move-Up Buyer

Purchase Price: $700,000

Down Payment: $45,000 (6.4%)

Mortgage Amount: $655,000

CMHC Rate: 4.00%

CMHC Premium: $26,200

Total Mortgage: $681,200

Quebec QST (9.975%): $2,615

Recent Changes to CMHC Insurance (2024-2025)

2024-2025 Updates

  • 30-Year Amortization Option

    First-time homebuyers purchasing newly built homes can now choose 30-year amortization with a 0.20% premium surcharge (effective August 1, 2024)

  • Increased Maximum Purchase Price

    Maximum eligible purchase price increased from $1,000,000 to $1,500,000, expanding access to insured mortgages

Benefits of CMHC Insurance

Lower Interest Rates

With CMHC insurance, you typically qualify for lower mortgage interest rates compared to uninsured mortgages, often saving you more than the cost of the insurance premium.

Smaller Down Payment

Enter the housing market sooner with as little as 5% down payment, rather than waiting to save the traditional 20% down payment.

Energy Efficiency Rebate

Up to 25% premium refund available when financing an energy-efficient home that meets specific environmental standards.[6]

Mortgage Portability

Transfer your insured mortgage to a new property when you move, potentially saving on future insurance costs.

Provincial Sales Tax on CMHC Premiums

Need Help Calculating Your CMHC Insurance?
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