How this calculator works
Enter the purchase price, down payment and amortization. The calculator finds the loan-to-value ratio, applies the CMHC premium rate for that band, and adds the premium to the loan. CMHC default insurance is mandatory when the loan-to-value ratio is above 80% and the lender is federally regulated. The maximum loan-to-value ratio is 95% for one- and two-unit owner-occupied homes, and the purchase price must be below $1,500,000. The minimum down payment is 5% of the first $500,000 of the price plus 10% of the amount above $500,000. The 30-year option uses the CMHC Home Start rates, which apply to first-time buyers or newly built homes and are 0.20 percentage points above the 25-year rate for high-ratio loans. CMHC publishes no separate 30-year rate at or below 80% loan-to-value, so the standard rate is used there. Provincial sales tax on the premium (Ontario 8%, Quebec 9%, Saskatchewan 6%) is not included and cannot be added to the loan.
Formula
Loan = purchase price - down payment. LTV = loan / purchase price. Premium = loan x premium rate. Insured loan = loan + premium.
Worked example
A $500,000 home with a $25,000 down payment has a $475,000 loan and a 95% loan-to-value ratio. The 25-year premium rate is 4.00%, so the premium is $19,000 and the insured loan is $494,000. At 30 years the Home Start rate is 4.20%, giving a $19,950 premium and a $494,950 insured loan.
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Frequently asked questions
Can the premium be paid upfront?
Yes. Lenders may let you pay it in cash instead of adding it to the mortgage.
Why is my minimum down payment higher than 5%?
Above a $500,000 purchase price, the minimum is 5% on the first $500,000 and 10% on the rest.
Is CMHC insurance the same as mortgage life insurance?
No. CMHC insurance protects the lender against default. Mortgage life insurance pays a benefit on death.
Does the calculator include provincial tax on the premium?
No. Ontario, Quebec and Saskatchewan charge provincial sales tax on the premium, and it cannot be added to the loan.