🧮CMHC Mortgage Insurance Calculator (Canada)
Buying a house in Canada with less than a 20% down payment? You are legally required to purchase mortgage default insurance (often called CMHC insurance). Use our calculator to find out exactly how much this premium will add to your mortgage, including any Provincial Sales Tax (PST) due on closing day.
Last updated: · Reviewed by The CalcWise Team
How to use this calculator
- Enter the total purchase price of the home.
- Enter your down payment. Remember, in Canada, the minimum down payment is 5% for the first $500k, and 10% for any portion above $500k. Homes over $1 million require 20% down and do not qualify for CMHC insurance.
- Select your province, as Ontario, Quebec, and Saskatchewan charge a Provincial Sales Tax (PST) on the CMHC premium.
- Click Calculate to see your premium rate, total insurance cost, and how much PST you must pay upfront in cash on closing day.
How it works
CMHC insurance (or mortgage default insurance from providers like Sagen or Canada Guaranty) protects the lender, not you, in case you default on your mortgage. However, the cost is passed entirely to you, the buyer.
The premium is calculated as a percentage of your total loan amount. The smaller your down payment percentage, the higher the premium rate. For example, a 5% down payment carries a massive 4.00% premium rate, while a 15% down payment drops the premium rate to 2.80%.