The current premium rates for mortgage default insurance in Canada, explained — what you pay at each loan-to-value band, why, and how it lands on your mortgage. Want the dollar figure for your numbers? Use the CMHC insurance calculator.
On an owner-occupied home the CMHC premium runs from 0.60% of the mortgage (up to 65% LTV) to 4.00% (90.01%–95% LTV). The less you put down, the higher the rate. A longer-than-25-year amortization adds 0.20%.
| Loan-to-value ratio | Premium (% of total mortgage) |
|---|---|
| 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% |
| 90.01% to 95% — non-traditional down payment | 4.50% |
Loan-to-value (LTV) is your mortgage divided by the home's price, as a percentage. If you buy a $500,000 home with $50,000 down, you borrow $450,000 — that's 90% LTV. Since a smaller down payment leaves the lender more exposed, the insurer charges a higher premium as LTV rises.
Mortgage default insurance is generally required when your down payment is under 20% (i.e. LTV above 80%). At 20% or more down, it's usually not required at all, so the 0.60%–2.40% bands mostly apply to refinances, ports and special files rather than typical low-down-payment purchases.
Buy a $600,000 home with $45,000 down (7.5%):
Illustrative — verify with a lender, not financial advice. Provincial sales tax on the premium (Ontario, Manitoba, Quebec) is extra and due at closing.
The premium is a one-time charge. You can add it to your mortgage and pay it down over the life of the loan (you'll pay interest on it at your mortgage rate) or pay it as a lump sum at closing. In Ontario, Manitoba and Quebec, provincial sales tax on the premium can't be added to the loan and must be paid up front.
A smaller down payment means a higher loan-to-value, which is riskier for the lender if you default. The insurer prices that risk into a higher premium percentage.
Only if your amortization is longer than 25 years — then add 0.20% to the band rate. Thirty-year amortizations are available to first-time buyers and buyers of new builds on insured mortgages.
Generally no, but CMHC's Eco products offer a 25% partial premium refund for buying, building or improving an energy-efficient home. Ask your lender.