CMHC premium rates in 2026
The Canada Mortgage and Housing Corporation publishes a premium schedule based on the loan-to-value ratio (LTV) — the mortgage divided by the price. Private insurers Sagen and Canada Guaranty charge the same headline rates for standard purchases, so “CMHC insurance” is used loosely for all three. Rates below are for owner-occupied homes of 1–4 units.
| Loan-to-value | Down payment | Premium on loan |
|---|---|---|
| Up to 65% | 35%+ | 0.60% |
| 65.01–75% | 25–34.99% | 1.70% |
| 75.01–80% | 20–24.99% | 2.40% |
| 80.01–85% | 15–19.99% | 2.80% |
| 85.01–90% | 10–14.99% | 3.10% |
| 90.01–95% | 5–9.99% | 4.00% |
| 90.01–95% (non-traditional down payment) | 5–9.99% | 4.50% |
Two extra charges matter: an amortization longer than 25 years (available on insured loans only to first-time buyers and new builds) adds 0.20%, and a “non-traditional” down payment — for example borrowed funds — raises the top tier to 4.50%. Below 80% LTV the premium is optional; lenders sometimes insure such loans in bulk at their own expense, which is one reason insured and “insurable” mortgages get the best rates.
How much is CMHC insurance on a typical home?
Because the minimum down payment rises above 5% once the price passes $500,000, nearly every minimum-down purchase between $500,000 and $1.5 million still lands above 90% LTV and pays the full 4.00%.
| Price | Min. down | LTV | Premium (min. down) | Premium (10% down) | Ontario PST 8% |
|---|---|---|---|---|---|
| $400,000 | $20,000 | 95.0% | $15,200 (4.0%) | $11,160 | $1,216 |
| $600,000 | $35,000 | 94.2% | $22,600 (4.0%) | $16,740 | $1,808 |
| $800,000 | $55,000 | 93.1% | $29,800 (4.0%) | $22,320 | $2,384 |
| $1,000,000 | $75,000 | 92.5% | $37,000 (4.0%) | $27,900 | $2,960 |
| $1,200,000 | $95,000 | 92.1% | $44,200 (4.0%) | $33,480 | $3,536 |
| $1,400,000 | $115,000 | 91.8% | $51,400 (4.0%) | $39,060 | $4,112 |
Sales tax on the premium
The premium itself goes into the mortgage, but in three provinces it attracts sales tax that you must pay in cash on closing day: Ontario 8%, Quebec 9% and Saskatchewan 6%. On a $22,600 premium (a $600,000 home with the minimum down payment) that is $1,808 in Ontario. Lawyers and notaries collect it with your other closing costs, so build it into your cash budget.
What CMHC insurance really costs over time
Adding the premium to the loan means you also pay interest on it. On the $600,000 example, the $22,600 premium raises the 25-year payment at 4.94% by $131 a month, and over the full amortization it costs about $39,200 including interest. That is real money — but compare it with renting for the extra years it might take to save 20%: on a $600,000 home the gap between $35,000 and $120,000 is $85,000.
Who qualifies for an insured mortgage?
- Purchase price below $1.5 million (raised from $1 million on 15 December 2024).
- Minimum down payment: 5% of the first $500,000 and 10% of the rest.
- Owner-occupied home of 1–4 units.
- Debt-service ratios within 39% GDS and 44% TDS at the stress-test rate, and a minimum credit score (CMHC requires at least one borrower with a score of 600 or more).
- Amortization of 25 years, or 30 years for first-time buyers and new builds.
CMHC vs 20% down: which is cheaper?
Insured mortgages often carry slightly lower rates than uninsured ones because the lender carries no default risk, so the premium is partly offset. If you can get from 19% to 20% down, do — the 2.80% premium disappears completely. Between 5% and 10% down, getting to 10% cuts the rate from 4.00% to 3.10%, a 0.90-point saving on the whole loan.
FAQ
How much is CMHC insurance?
On a purchase, 2.80% of the loan with 15–19.99% down, 3.10% with 10–14.99% down and 4.00% with 5–9.99% down. An amortization over 25 years adds 0.20%. It is usually added to the mortgage.
When is CMHC insurance required?
Whenever your down payment is less than 20% of the purchase price. It is only available on homes priced below $1.5 million.
Do you pay tax on CMHC insurance?
In Ontario (8%), Quebec (9%) and Saskatchewan (6%) provincial sales tax applies to the premium and must be paid in cash at closing; it cannot be added to the mortgage.
Can I avoid CMHC insurance?
Yes, by putting at least 20% down. At 20% or more the premium is not required, although uninsured mortgage rates can be slightly higher.
How much CMHC insurance on a $600,000 house?
With the minimum $35,000 down the loan is $565,000 at 94.2% loan-to-value, so the 4.00% premium is $22,600.
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Assumptions & sources
- Bank of Canada raised the target for the overnight rate by 25 basis points to 2.50% on 28 October 2026 (Bank Rate 2.75%, deposit rate 2.45%); next decision 9 December 2026. Big-bank prime rose to 4.70% on 29 October 2026.
- Typical rates: 4.94% 5-year fixed and 3.95% 5-year variable are the median of the 17 lenders listed in Ratehub.ca’s rate tables updated 2 November 2026 (fixed range 4.44%–5.99%, variable 3.68%–4.70%). Insured (high-ratio) mortgages often get slightly lower rates than uninsured ones.
- Fixed-rate payments use Canadian semi-annual compounding (Interest Act); variable-rate payments use monthly compounding, which most lenders apply to variable mortgages. Rates are assumed constant for the whole amortization.
- CMHC homeowner premiums on the loan amount: 4.00% above 90% loan-to-value, 3.10% for 85.01–90%, 2.80% for 80.01–85%, plus 0.20% for amortizations over 25 years. Provincial sales tax on the premium in Ontario (8%), Quebec (9%) and Saskatchewan (6%) must be paid in cash at closing.
- Minimum down payment (Department of Finance rules from 15 December 2024): 5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million; 20% at $1.5 million or more, where default insurance is not available. 30-year insured amortizations: first-time buyers and buyers of new builds.
- Stress test: qualify at the greater of 5.25% or the contract rate + 2 points (OSFI Guideline B-20; the same floor applies to insured loans). Income needed uses CMHC’s 39% GDS / 44% TDS limits, property tax of 1% of the price a year and $100/month heating. Take-home pay: 2026 Ontario, from our Canada salary after tax engine.
- National average price: CREA, September 2026 ($666,538, −1.6% year over year).