Canadian Mortgage Calculator · Practical guide
How Much Is CMHC Insurance on a Mortgage?
CMHC premiums range from 2.8% to 4% of your mortgage amount and are added to the balance you finance.
At a glance
The short answer
CMHC mortgage insurance costs 4% of your loan with 5-9.99% down, 3.1% with 10-14.99% down, and 2.8% with 15-19.99% down. With 20% or more down, no insurance is required. The premium is not paid upfront — it is added to your mortgage balance and paid off over the amortization.
| Down Payment ($500,000 Home) | Loan Before Premium | Premium Rate | CMHC Premium |
|---|---|---|---|
| 5% ($25,000) | $475,000 | 4.0% | $19,000 |
| 10% ($50,000) | $450,000 | 3.1% | $13,950 |
| 15% ($75,000) | $425,000 | 2.8% | $11,900 |
| 20% ($100,000) | $400,000 | 0% | None |
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Canadian Mortgage Calculator
Enter your own values, then compare the result with the examples below.
Results
Why the premium costs more than it looks
Because the premium is financed, you also pay interest on it for the full amortization. On the $500,000 example with 5% down at 5% over 25 years, the $19,000 premium adds roughly $114 to the monthly payment and thousands more in interest over the life of the loan.
How it affects your payment
The calculator folds the premium into the total financed amount before computing your payment. On that same home with 10% down, the base loan is $450,000, the premium adds $13,950, and you actually finance $463,950 — the figure your monthly payment is based on.
How to avoid it
Saving a 20% down payment eliminates the premium entirely. On a $500,000 home, that means $100,000 down instead of $25,000 — but it saves the $19,000 premium plus the interest it would have accrued, and it shrinks the loan itself by another $75,000.
Frequently Asked Questions
Is CMHC insurance paid monthly or upfront?
Neither, in most cases. The premium is added to your mortgage principal and paid off gradually through your regular monthly payments over the amortization period.
Who does CMHC insurance protect?
It protects the lender, not you, in case of default. It exists so buyers with less than 20% down can still qualify for competitive mortgage rates.
What is the minimum down payment in Canada?
For homes under $500,000 it is 5%. This calculator enforces a 5% minimum and applies the 4% premium rate for down payments between 5% and 9.99%.
Can I avoid CMHC insurance with a bigger down payment?
Yes. At 20% down or more, default insurance is not required and the calculator shows no premium.