What is Mortgage Loan Insurance?
Mortgage loan insurance is typically required by lenders when homebuyers make a
down payment of less than 20% of the purchase price. Mortgage loan insurance
helps protect lenders against mortgage default, and enables consumers to purchase
homes with a minimum down payment of 5% — with interest rates comparable to
those offered with a larger down payment.
To obtain mortgage loan insurance, lenders pay an insurance premium. Typically,
your lender will pass this cost on to you. The premium is based on the loan-to-value
ratio (mortgage loan amount divided by the purchase price). The premium can be
paid in a single lump sum or it can be added to your mortgage and included in your
How Much Does it Cost?
The following table provides you with a general idea of the premiums charged by
CMHC. The exact premium will be calculated when you apply for a mortgage and
provincial sales tax may apply.
Premium on Total Loan*
Standard Purchase PremiumPremium
Up to and including 65% 0.50%
Up to and including 75% 0.65%
Up to and including 80% 1.00%
Up to and including 85% 1.75%
Up to and including 90% 2.00%
Up to and including 95% 2.75%
Traditional Down Payment 2.75%
Non-Traditional Down Payment 2.90%
Premium Calculator can also help you with your estimations.
*The maximum loan-to-value for refinance is 80%. Premium savings may be
available if you are porting an existing CMHC-insured mortgage or if you are using
CMHC-insured financing to purchase an energy-efficient home or make
energy-saving renovations. Ask your mortgage professional or visit
for more details about mortgage loan insurance, such as down payment
requirements, portability, etc.
Verico Brokers For Life Inc.