How CMHC premiums are set
Mortgage default insurance protects the lender when you put down less than 20%. The premium is a percentage of the mortgage that rises as your down payment falls: 2.80% at 15% down, 3.10% at 10%, and 4.00% at the 5% minimum. CMHC, Sagen, and Canada Guaranty all charge the same rates, so the cost is the same whichever insurer your lender uses.
The premium is added to your mortgage
You do not write a cheque for the premium at closing. It is added to your principal and repaid with interest over the amortization, which is why a 4.00% premium on a large mortgage can cost noticeably more than its sticker value over time. The one piece paid up front is the provincial sales tax on the premium in Ontario, Quebec, and Saskatchewan.
Keep the record from day one
From the moment you close, the documents pile up: the mortgage, the insurance, the closing statement, the warranties. Keeping them in one durable place is the cheapest insurance a homeowner has. That is what Habyn property records are built to keep, free for homeowners on the Home plan.