CMHC Mortgage Insurance Calculator

Determine your mandatory default insurance premium.

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5.0%
Insurance Premium (Added to Mortgage)
$0

Standard Rate of 0.00% applied.

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What is CMHC Insurance?

In Canada, if your down payment is less than 20% of the home's purchase price, you are legally required to purchase Mortgage Default Insurance. This insurance protects the lender (not you) in case you stop making payments.

While CMHC (Canada Mortgage and Housing Corporation) is the most well-known provider, private insurers like Sagen (formerly Genworth) and Canada Guaranty offer identical products with the same rates.

Premium Rates (Standard)

The premium is calculated as a percentage of your total mortgage amount and is typically added to your mortgage balance:

  • 5% to 9.99% Down: 4.00% Premium
  • 10% to 14.99% Down: 3.10% Premium
  • 15% to 19.99% Down: 2.80% Premium

The $1 Million Rule

Homes with a purchase price of $1 million or more are not eligible for mortgage default insurance. This means you strictly require a down payment of at least 20% to purchase a home at this price point.

CMHC Premium Formula

The premium is calculated strictly on the total amount borrowed (the mortgage amount), not on the purchase price of the home.

Purchase\;Price - Down\;PaymentThe base loan amount you are requesting from the lender
Premium\;RateThe percentage applied based on your down payment tier (2.8% to 4.0%)

Manual Step: Calculating a 5% Down Premium

You are purchasing a home for $500,000. You put down the minimum required 5% ($25,000).

1
1. Calculate Mortgage Base
Subtract your down payment from the purchase price.
2
2. Determine Rate Tier
Because your down payment is exactly 5%, you fall into the highest premium tier.
3
3. Apply Premium Rate
Multiply the base mortgage by 4%.
4
4. Final Mortgage Amount
The $19,000 premium is added to your loan, bringing your total debt to $494,000.
5
Result
You pay interest on this extra $19,000 for the entire life of your mortgage.

Frequently Asked Questions

Do I have to pay CMHC insurance upfront?
No. In almost all cases, the insurance premium is added to your total mortgage balance and you pay it off gradually over the life of your amortization (e.g., 25 years). However, the provincial sales tax (PST) on the premium must be paid upfront in cash on closing day in some provinces like Ontario, Quebec, and Saskatchewan.
Does the premium protect me if I lose my job?
Absolutely not. Mortgage default insurance strictly protects the lender. If you default on your mortgage, the insurer pays the bank. The insurer then has the legal right to pursue you for the shortfall.
Can I avoid CMHC insurance?
Yes, by providing a down payment of 20% or more. This is considered a 'conventional' mortgage and does not legally require default insurance.

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Frequently Asked Questions

How accurate is the CMHC Insurance Calculator?
The calculator applies the displayed formula to the values you enter. Rounding and assumptions can affect the result, so verify it against an authoritative source before using it for an official or legal purpose.
Is my data stored or tracked?
No. This tool processes all mathematical operations strictly within your local browser environment. No personal data or inputs are transmitted to or stored on our servers.
How frequently is this tool updated?
All mathematical logic, constants, and tax brackets are audited annually to ensure compliance with the latest 2026 global standards.

Sources & Citations

  • Standard Mathematical Algorithms— IEEE Computation Standards
  • Data Integrity & Local Processing Guidelines— W3C
  • General Mathematical Verification— National Institute of Standards and Technology (NIST)

Finance Editorial Desk

Financial Calculator Research | Formula review, Public-source data checks

“The finance desk maintains mortgage, tax, retirement, loan, and investment calculators using documented formulas, public agency references, and repeatable test cases. These tools provide educational estimates, not personalized financial advice.”

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Calculator methods and editorial structure reviewed July 11, 2026. Results are estimates; verify regulated rates, eligibility rules, and professional decisions with the cited primary source.

Important: Educational Purposes OnlyThe calculators, estimates, and financial formulas provided on CalculatorVillage.com are for informational and educational purposes only. They are not intended as certified financial planning, tax, legal, or investment advice. Actual rates, terms, and returns will vary. Always consult with a qualified professional before making significant financial decisions.