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Homeโ€บCanadaโ€บCMHC Insurance Calculator

CMHC Mortgage Insurance Calculator Canada 2025

Calculate your mortgage insurance premium, compare buying now with CMHC vs saving for 20% down, and see the true cost of insurance over your full amortization.

CMHC mortgage insurance is required when your down payment is less than 20%. Premiums range from 2.8% to 4.0% of the mortgage amount. Maximum insured purchase: $1.5M (updated Dec 2024).
$
Total purchase price of the home
$
5% min on first $500K + 10% on amount above $500K
Some provinces charge PST on the CMHC premium
%
Current fixed or variable rate
Maximum 25 years for insured mortgages
โ€”

Estimates only. Actual premiums set by CMHC, Sagen, or Canada Guaranty. Not financial advice.

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How to Use This Calculator

Tab "Premium Estimate"

Enter the purchase price of the home and your down payment in dollars. Select your province to see if provincial sales tax applies to the premium. The calculator shows your CMHC premium rate, premium amount, total mortgage (with premium added), and the monthly payment impact. Optionally adjust the mortgage rate and amortization under "More options."

Tab "Pay LMI vs Save 20%"

Enter the purchase price, your current savings, and how much you can save monthly. The calculator compares two scenarios: buying now with a minimum down payment (paying CMHC insurance) versus waiting until you have 20% saved. It accounts for property appreciation while you save โ€” the "moving goalpost" effect that makes saving harder in rising markets.

Tab "Total Cost Impact"

Enter the purchase price, down payment, mortgage rate, and amortization. The calculator shows the CMHC premium, the interest you will pay on that premium over the full amortization, and the total cost difference between a mortgage with and without CMHC insurance. This reveals the true lifetime cost of mortgage insurance.

The Formulas

CMHC premium tiers (2025):

Down payment 5.00% โ€“ 9.99% โ†’ Premium rate: 4.00%
Down payment 10.00% โ€“ 14.99% โ†’ Premium rate: 3.10%
Down payment 15.00% โ€“ 19.99% โ†’ Premium rate: 2.80%
Down payment 20.00%+ โ†’ Not required

Minimum down payment:
5% on the first $500,000 + 10% on the amount above $500,000

Premium calculation:
CMHC premium = (Purchase price โˆ’ Down payment) ร— Premium rate
Total mortgage = (Purchase price โˆ’ Down payment) + CMHC premium

Monthly payment (Canadian semi-annual compounding):
Effective monthly rate = (1 + annual rate / 2)^(1/6) โˆ’ 1
Payment = Principal ร— r / (1 โˆ’ (1 + r)^(โˆ’n))

Maximum insured purchase price: $1,500,000 (effective Dec 15, 2024)

The premium is applied to the mortgage amount (not the purchase price). It is added to the mortgage principal and amortized, meaning you pay interest on the premium over the life of the loan. Provincial sales tax on the premium, where applicable, must be paid upfront at closing.

Example

Maria โ€” First-time buyer in Toronto, $600K home, 10% down

Maria is buying a $600,000 condo in Toronto with a $60,000 down payment (10%). She qualifies for a 5.5% mortgage rate with a 25-year amortization.

Purchase price$600,000
Down payment$60,000 (10%)
Mortgage before premium$540,000
CMHC premium rate3.10%
CMHC premium$16,740
Ontario PST on premium (8%)$1,339 (paid at closing)
Total mortgage$556,740
Monthly payment$3,404
Monthly impact of CMHC+$102/mo

Maria's $16,740 CMHC premium adds about $102 per month to her mortgage payment. Over 25 years, she will pay approximately $14,900 in interest on the premium alone โ€” making the true cost of her mortgage insurance about $31,640. However, if her home appreciates 3% per year, waiting to save 20% ($120,000) would have taken her about 30 months, during which the home's price would have risen to ~$655,000.

Frequently Asked Questions

CMHC mortgage insurance (mortgage default insurance) protects the lender, not the borrower. If you default on your mortgage, the insurer pays the lender the outstanding balance. Despite protecting the lender, the borrower pays the premium. This insurance is mandated by the federal government for all mortgages with less than 20% down payment. Three companies provide it in Canada: CMHC (a Crown corporation), Sagen (formerly Genworth Canada), and Canada Guaranty. All three charge the same government-regulated premium rates.
Mortgage insurance is required for any home purchase in Canada where the down payment is less than 20% of the purchase price. The property must also be priced at $1.5 million or less (raised from $1M in December 2024). You must meet the minimum down payment: 5% on the first $500,000 and 10% on any amount between $500,000 and $1.5 million. For example, a $700,000 home requires at least $45,000 down ($25,000 + $20,000). Properties over $1.5 million require a minimum 20% down payment and cannot be insured.
On December 15, 2024, the Government of Canada raised the maximum purchase price for insured mortgages from $1 million to $1.5 million. This was the first increase since 2012 and reflects the significant rise in Canadian home prices, especially in Toronto and Vancouver. The change means buyers can now purchase homes up to $1.5M with as little as 5% down (on the first $500K) plus 10% on the remainder, plus CMHC insurance. The government also extended 30-year amortizations for first-time buyers and new construction.
Yes, CMHC mortgage insurance is portable. When you sell your current home and buy another, you can transfer the existing insurance to the new mortgage. Conditions apply: the new mortgage amount generally cannot exceed the original insured amount, you must stay with the same lender, and the porting must be completed within a specified timeframe (usually 120 days). Porting saves you from paying a new premium on the replacement mortgage. If the new mortgage is larger, you may need to pay a top-up premium on the additional amount. Speak with your lender to arrange the transfer.
The only way to avoid mortgage insurance entirely is to make a down payment of 20% or more. All three Canadian insurers (CMHC, Sagen, Canada Guaranty) charge the same regulated premium rates, so switching providers does not save money. Some strategies to reach 20% faster include: using the First Home Savings Account (FHSA) for tax-deductible savings, withdrawing from your RRSP under the Home Buyers' Plan (up to $60,000), receiving a gift from family, or purchasing a less expensive property. Note that while mortgage insurance adds cost, it also allows you to enter the market sooner โ€” which can be beneficial in appreciating markets.

Related Calculators

๐Ÿก Mortgage Calculator
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๐Ÿ“Š Mortgage Affordability
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๐Ÿ  Home Buyers' Plan
RRSP withdrawal for first home โ€” up to $60,000 tax-free under the HBP.
๐Ÿ“‹ Land Transfer Tax
Provincial land transfer tax and first-time buyer rebates across Canada.
๐Ÿ’ฐ FHSA Calculator
First Home Savings Account โ€” tax-deductible contributions, tax-free withdrawal for your first home.

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