# CMHC Mortgage Insurance: Premium Rates and Cost (2026) > What CMHC mortgage insurance costs: premium rates by down payment, worked examples, the $1.5 million cap, and when putting 20% down is worth it. Source: https://trykosh.com/learn/cmhc-mortgage-insurance Guide - Homes and mortgages # CMHC mortgage insurance: what it costs and how to avoid it If you buy with less than 20% down, your mortgage has to be insured against default, and you pay for it. The premium is a percentage of the loan, from 0.60% to 4.00%, added to your mortgage. Here's how it's calculated and what it costs in real numbers. Updated October 31, 20263 min readBy the Kosh team On this page[What is mortgage default insurance?](#what-it-is)[CMHC premium rates](#rates)[Worked examples](#examples)[Who can get an insured mortgage?](#eligibility)[Is it worth waiting to save 20%?](#worth-it)[FAQs](#faq) ## What is mortgage default insurance? Mortgage default insurance protects the lender, not you, if you stop paying. In exchange, it lets lenders offer mortgages with as little as 5% down, often at lower rates than uninsured loans. CMHC is the federal Crown corporation that provides it; private insurers offer it too, at similar prices. People say "CMHC insurance" for all of them. It's required when your down payment is under 20%. With 20% or more, it's optional (lenders sometimes insure in bulk at their own cost). ## CMHC premium rates CMHC premium on the total loan, by loan-to-value Loan-to-value Down payment Premium Up to 65% 35% or more 0.60% 65.01% to 75% 25% to 35% 1.70% 75.01% to 80% 20% to 25% 2.40% 80.01% to 85% 15% to 20% 2.80% 85.01% to 90% 10% to 15% 3.10% 90.01% to 95% 5% to 10% 4.00% 90.01% to 95%, non-traditional down payment 5% to 10%, borrowed 4.50% The premium is a percentage of the **loan**, not the price, and it's usually added to the mortgage, so you pay interest on it too. In Quebec, Ontario and Saskatchewan, provincial sales tax applies to the premium and must be paid in cash at closing; it can't be added to the loan. ## Worked examples - **$600,000 home, minimum down payment.** The minimum is $35,000 (5.8%), so the loan is $565,000 at a loan-to-value of 94.2%. The premium is 4% of the loan: **$22,600**, making the mortgage $587,600. - **$450,000 home, 10% down.** The loan is $405,000 at 90% loan-to-value. The premium is 3.10%: **$12,555**. - **$600,000 home, 20% down.** You'd need $120,000 down, and no insurance is required. Insurers may charge more for a 30-year amortization, and a few other options; ask your lender for the full premium before you commit. ## Who can get an insured mortgage? - The purchase price must be under $1.5 million (the cap was raised from $1 million on December 15, 2024). - Amortization of up to 25 years, or up to 30 years if you're a first-time buyer or buying a newly built home. - The home is generally one you or a family member will live in. - You meet the lender's and insurer's credit and debt-service requirements, tested at a qualifying rate above your contract rate. ## Is it worth waiting to save 20%? Not automatically. The premium is a real cost, but so is waiting: rent paid in the meantime and the risk that prices or rates move against you. And insured mortgages often come with lower rates than uninsured ones, which can offset part of the premium. Compare the full cost both ways, including the interest on the premium over the amortization. Steps that genuinely reduce or avoid the premium: cross a loan-to-value threshold (going from 9% to 10% down drops the rate from 4.00% to 3.10%), use the [FHSA](/learn/fhsa-explained) and [Home Buyers' Plan](/learn/home-buyers-plan) to make a bigger down payment, or consider a lower price. [Free tool**Mortgage payment calculator**Work out your mortgage payment the way Canadian lenders do, with semi-annual compounding, any payment frequency and CMHC insurance added when you put down less than 20%.](/tools/mortgage-payment-calculator) **Where Kosh fits** Kosh shows how far you are from the next down-payment threshold, how much your FHSA, RRSP and TFSA could contribute, and how long it would take at your actual monthly savings. ## Frequently asked questions How much is CMHC insurance? Between 0.60% and 4.00% of the mortgage amount for a traditional down payment, depending on your loan-to-value ratio. With 5% to 10% down the premium is 4.00% of the loan. Is CMHC insurance required with 20% down? No. Default insurance is required only when your down payment is less than 20% of the purchase price. Can CMHC insurance be added to my mortgage? Yes, the premium is usually added to the mortgage. Provincial sales tax on the premium in Quebec, Ontario and Saskatchewan can't be added and must be paid at closing. What is the maximum price for an insured mortgage? Insured mortgages are available on homes priced under $1.5 million, a cap that took effect on December 15, 2024. Is CMHC insurance refundable? No. It is a one-time premium that protects the lender. If you sell, some insured mortgages are portable to a new home; ask your lender about the rules. ## Sources - [CMHC: Mortgage loan insurance cost](https://www.cmhc-schl.gc.ca/consumers/home-buying/mortgage-loan-insurance-for-consumers/cmhc-mortgage-loan-insurance-cost) - [FCAC: Down payment](https://www.canada.ca/en/financial-consumer-agency/services/mortgages/down-payment.html) - [Department of Finance: Mortgage reforms (September 2024)](https://www.canada.ca/en/department-finance/news/2024/09/government-announces-boldest-mortgage-reforms-in-decades-to-unlock-homeownership-for-more-canadians.html) Written by the Kosh team and checked against the rules in force on October 31, 2026. This guide is general information, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not registered with any Canadian securities regulator as an adviser or dealer, does not recommend specific securities, and does not hold your money or execute trades. Tax figures are estimates; confirm with the CRA or a qualified professional before acting. Investing carries risk. ## Upload your statement and Kosh does this for you. Kosh reads your bank, card and investment statements, estimates your federal and provincial tax and turns guides like this one into your own numbers and next steps. [Start free](/signup?via=learn-cmhc-mortgage-insurance)