Canada — CMHC-style premium bands
CMHC Mortgage Insurance Calculator
Estimate default insurance premium added to your Canadian mortgage.
Down payment %
10.0%
CMHC premium rate
3.10%
CMHC premium
$13,950.00
Insured loan amount
$463,950.00
CMHC mortgage insurance explained
When insurance is required
High-ratio mortgages (down payment under 20%) require default insurance to protect the lender. CMHC is the best-known provider, but private insurers use similar premium schedules.
Premiums are calculated as a percentage of the mortgage amount and tier by LTV. Lower down payments mean higher premium rates.
Impact on your loan
The premium is typically added to your mortgage principal, which slightly increases your monthly payment and total interest over the amortization period.
Reaching 20% down avoids the premium entirely and may unlock better rates from some lenders.
Frequently asked questions
- ?Why is CMHC added to my loan?
- When your down payment is below 20%, lenders typically require default insurance. The premium is usually added to your mortgage balance.
- ?What does 5-year fixed mean?
- Your interest rate is fixed for 5 years, then you renew. Payments are calculated using the full amortization period (often 25 years).
- ?Is CMHC insurance the same as home insurance?
- No — CMHC (default) insurance protects the lender if you default. Home insurance protects the property itself and is a separate required cost.