CMHC Mortgage Default Insurance
Insurance that protects your lender if you stop paying, and is usually required when your down payment is less than 20% of the price.
Mortgage default insurance, often called CMHC insurance, protects your lender if you cannot make your payments. It does not protect you. It is usually required when your down payment is less than 20% of the purchase price. Three insurers offer it in Canada: Canada Mortgage and Housing Corporation (CMHC), Sagen and Canada Guaranty. Lenders may also require it with 20% down, for example for some self-employed borrowers or people with poor credit.
Insurance is only available on homes priced below $1.5 million. The federal government raised that cap from $1 million for insurance applications submitted on or after December 15, 2024. The minimum down payment is 5% of the first $500,000 and 10% of any portion above that. A home priced at $1.5 million or more needs at least 20% down.
The premium is a one-time charge based on how much you borrow compared with the price. On CMHC's current table, it is 4.00% of the loan with less than 10% down. It is 3.10% with 10% to under 15% down, and 2.80% with 15% to under 20% down. A rate of 4.50% applies to a 95% loan using a non-traditional down payment. You can pay the premium up front or add it to your mortgage. Ontario, Quebec and Saskatchewan charge provincial sales tax on it, which cannot be added to the loan.
Insured mortgages normally have a maximum amortization of 25 years. Since December 15, 2024, first-time buyers and buyers of newly built homes can choose up to 30 years. CMHC adds a 0.20% premium surcharge for that longer amortization. Insured borrowers can also switch lenders at renewal without passing another stress test.
Your lender arranges the insurance and gives you the exact premium when you apply. Other insurers set their own premiums, so figures can vary slightly.
Sources
- CMHC: What is mortgage loan insurance?
- CMHC: Mortgage loan insurance cost
- Department of Finance: Delivering the boldest mortgage reforms in decades
- CMHC: CMHC revises homeowner mortgage loan insurance premiums (June 2024)
Last reviewed October 16, 2026.
Go deeper
Related terms in Mortgage & Buying
- First Home Savings Account A registered account for first-time buyers: deductible contributions of $8,000 a year up to $40,000, and tax-free withdrawals for a home.
- Fixed vs Variable Rate A fixed rate stays the same for your whole mortgage term, while a variable rate moves up or down with your lender's prime rate.
- HELOC A revolving line of credit secured by your home, usually at a variable rate, capped at 65% of the home's value by federal rules.
- Home Buyers' Plan A program that lets first-time buyers withdraw up to $60,000 from their RRSPs tax-free for a home, repaid over 15 years.
General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.