1 Purchase Information
📊 CMHC Premium Rate Grid (2026)▼
| Down Payment | LTV Ratio | Premium Rate |
|---|---|---|
| 35% or more | 65% or less | 0.60% |
| 25% to 34.99% | 65.01% – 75% | 1.70% |
| 20% to 24.99% | 75.01% – 80% | 2.40% |
| 15% to 19.99% | 80.01% – 85% | 2.80% |
| 10% to 14.99% | 85.01% – 90% | 3.10% |
| 5% to 9.99% | 90.01% – 95% | 4.00% |
Premium is calculated on the total mortgage amount. Add 0.20% for amortization over 25 years (up to 30 years).
💵 Minimum Down Payment Rules▼
Two-Tier Minimum Down Payment
| Purchase Price | Minimum Down Payment |
|---|---|
| $500,000 or less | 5% of purchase price |
| $500,000 to $1,499,999 | 5% on first $500,000 + 10% on portion above |
| $1,500,000 or more | 20% of purchase price (CMHC not available) |
Worked Examples
Example 1 — $400,000 home:
Example 2 — $750,000 home:
Example 3 — $1,200,000 home:
📖 When is CMHC Insurance Required?▼
Required
- Down payment is less than 20% of the purchase price
- Loan-to-Value (LTV) ratio is more than 80%
- Property price is $1,500,000 or less
Not Required
- Down payment is 20% or more (conventional mortgage)
Not Available
- Property price is over $1,500,000 (minimum 20% down required)
What It Covers
CMHC mortgage loan insurance protects the lender — not the buyer — if the borrower stops paying the mortgage. It allows buyers to make a smaller down payment (as low as 5%) and still qualify for a mortgage.
30-Year Amortization Eligibility
Available to:
- All first-time homebuyers (as of December 15, 2024)
- Eligible purchasers of newly built homes
The down payment must be below 20% for 30-year eligibility.
2 Frequently Asked Questions
What is CMHC mortgage insurance?
CMHC mortgage loan insurance protects the lender — not the buyer — if the borrower stops paying the mortgage. It allows buyers to make a smaller down payment (as low as 5%) and still qualify for a mortgage. It's required when the down payment is less than 20% of the purchase price.
How is the CMHC premium calculated?
The premium is calculated as a percentage of the total mortgage amount, based on the Loan-to-Value (LTV) ratio. Rates range from 0.60% (LTV ≤65%) to 4.00% (LTV 90.01%–95%).
What is the minimum down payment in Canada?
For homes $500,000 or less: 5% minimum. For homes between $500,000 and $1,499,999: 5% on the first $500,000 plus 10% on the portion above $500,000. For homes $1.5 million or more: minimum 20% is required and CMHC insurance is not available.
What is the 30-year amortization surcharge?
Mortgages with amortization over 25 years (up to 30 years) have an additional premium of 0.20%. This is available to all first-time homebuyers and eligible purchasers of newly built homes, provided the down payment is below 20%.
Is the CMHC premium tax-deductible?
No, the CMHC insurance premium itself is not tax-deductible. However, if the premium is added to your mortgage, the interest on that portion may be deductible if you use the property to earn income.
Can I avoid CMHC insurance?
Yes. You can avoid CMHC insurance by making a down payment of 20% or more of the purchase price. This gives you a conventional mortgage instead of a high-ratio mortgage.
3 Official Resources
Verify all calculations with CMHC or your mortgage professional before proceeding.
⚠️This tool is for information purpose only. We do not guarantee any claim.
It is made based on data publicaly available on official website of concerned department.
Last Updated: March 2026 | Official Determination Required