This calculator estimates mortgage default insurance (CMHC insurance) premium. Provide the total house purchase price and down payment amount either in dollars or percents. Click Calculate to display the result.
Estimated default mortgage insurance premiums and mortgage amounts:
| Purchase price | $500,000 | |||
| Down payment | 5.00% | 10.00% | 15.00% | 20.00% |
| $25,000 | $50,000 | $75,000 | $100,000 | |
| Loan-to-value | 95.00% | 90.00% | 85.00% | 80.00% |
| Insurance premium | 4.00% | 3.10% | 2.80% | 2.40% |
| $19,000 | $13,950 | $11,900 | $9,600 | |
| Required or optional? | required | required | required | optional |
| Total mortgage | $494,000 | $463,950 | $436,900 | $409,600 |
| Sales tax | ||||
To estimate mortgage insurance premium provide the following information:
Click Calculate to display the result.
Provided values are estimates only and may not apply to your specific situation.
Users should not rely on this calculator to make any financial decisions. For an exact determination please contact a professional
financial advisor or consult the Canada Mortgage and
Housing Corporation (CMHC) web site.
Mortgage default insurance, often referred to as mortgage loan insurance or as CMHC insurance, protects a mortgage lender (a bank) in the event of borrower default (that is, when a borrower stops making the required payments on a loan). Mortgage default insurance does not protect a borrower or the borrower's interest in the property. It also does not cover mortgage payments if the borrower is unable to pay or passes away. If such protection is required, other additional insurance products should be considered.
Mortgage default insurance is mandatory in Canada for mortgages with down payments of less than 20% of the house purchase price.
The mortgage default insurance premium is calculated as a percentage of the mortgage amount. The premium rate ranges from 0.60% to 4.00% and depends on the Loan-to-Value ratio which is determined as the percentage of the loan (mortgage amount) as compared to the house purchase price. The higher the Loan-to-Value ratio is, the higher the insurance premium will be.
| Loan-to-Value | Premium on Total Loan |
| Up to and including 65% | 0.60% |
| 65.01% to 75% | 1.70% |
| 75.01% to 80% | 2.40% |
| 80.01% to 85% | 2.80% |
| 85.01% to 90% | 3.10% |
| 90.01% to 95% | 4.00% |
The insurance premium can be paid up front in a lump sum or can be added to the total balance of the mortgage and paid monthly over the amortization term. In which case interest will also apply to the insurance premium.
The minimum required down payment ranges from 5% through 7.5% based on the house purchase price:
Note that mortgage default insurance is not available for houses priced at $1,000,000 or more.
Premiums in the following provinces are subject to sales tax (PST):
Effective July 1, 2020, Manitoba has eliminated its 7% Retail Sales Tax (RST) on mortgage default insurance premiums.
Note that the provincial sales tax cannot be added to the loan amount and has to be payed on closing day.
For more information about the mortgage default insurance, including eligibility criteria, please visit these websites:
Canada Mortgage and Housing Corporation (CMHC)
Sagen (previously known as Genworth Canada)
Canada Guaranty
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