The premium can be financed
Most buyers add the insurance premium to the mortgage. This increases the mortgage balance and means interest may be charged on the premium.
Mortgage default insurance calculator
CMHC Insurance Calculator
When your down payment is below 20%, mortgage default insurance is usually required. The premium is normally added to your mortgage, while Ontario’s tax on the premium is paid from your closing funds. Compare four down payment options to see how each choice changes the estimated premium and mortgage balance.
This calculator is for a standard owner-occupied home purchase in Ontario. It gives you a planning estimate, not a mortgage approval or a final insurer decision.
A licensed mortgage professional should confirm the final premium, eligibility and mortgage terms.
CMHC insurance calculator
Compare four down payment options.
Enter one purchase price, then compare how different down payments affect the estimated insurance premium, Ontario tax and mortgage balance.
Quick answer: A standard insured mortgage usually needs a down payment below 20% and a purchase price under $1.5 million. The premium rate depends on the down payment. Ontario also charges an 8% Retail Sales Tax (RST) on the premium, which is normally paid from your closing funds.
How the estimate works: base mortgage = purchase price minus down payment. Insurance premium = base mortgage × the applicable rate. Ontario tax = 8% of the premium.
Important closing-cost reminder: the insurance premium is usually added to the mortgage. Ontario’s tax on that premium is different—it is normally paid in cash at closing and is not added to the mortgage.
Sample shown: $500,000 purchase, first-time buyer and four down payment options. Change any field to compare your own situation.
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A 30-year insured mortgage may be available when at least one borrower is a first-time buyer or the home is newly built. It adds 0.20 percentage points to the insurance premium rate and may increase the total interest paid over time.
Showing the 5% down scenario.
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| Apply the 30-year insured premium surcharge Available only in eligible insured scenarios | ||||
| Premium rate applied | ||||
| Base mortgage Before insurance premium | ||||
| Estimated insurance premium | ||||
| Ontario tax on the premium 8% RST, normally due at closing | ||||
| Estimated mortgage balance Base mortgage plus any financed premium |
Important notes about the 30-year option
* A 30-year insured mortgage may be available when at least one borrower is a qualifying first-time home buyer or the property is a qualifying newly built home.
* The purchase price must be below $1.5 million, the down payment must be below 20%, and the minimum down payment must still be met.
* The home must normally be owner-occupied. This calculator is designed for a typical home with one or two residential units.
* A qualifying new home generally has not been occupied before. Interim occupancy in a newly built condominium may still be allowed.
* Choosing 30 years adds 0.20 percentage points to the estimated insurance premium rate. It may lower the monthly payment but can increase the total interest paid over time.
* This is a planning estimate only. Your lender and mortgage insurer confirm final eligibility, approval and premium details.
Plain English
What mortgage default insurance means for you.
Simple explanation: When your down payment is below 20%, mortgage default insurance is usually required. It protects the lender, not the buyer. The premium is normally added to the mortgage, so it increases the amount you borrow. Ontario’s tax on the premium is normally paid from your closing funds.
The Ontario tax is separate
Ontario charges 8% Retail Sales Tax on the premium. This amount is normally paid at closing and is not added to the mortgage.
A bigger down payment can lower two costs
It reduces the mortgage amount and may also move you into a lower premium-rate tier.
Who this helps
Useful for buyers comparing down payment options.
This page helps Ontario buyers understand the estimated insurance premium before speaking with a lender or mortgage professional.
Buyers with less than 20% down
Estimate what your insurance and Ontario tax will cost before you make an offer.
First-time buyers
Find out if you can choose a 30-year mortgage, and what it adds to your cost.
Buyers weighing a bigger down payment
See how much a bigger down payment actually saves before deciding whether to wait and save more.
Buyers near the $1.5M price ceiling
Check whether your target price still qualifies for insurance at all.
Newcomers to Canada
Learn how CMHC insurance works if it wasn't a thing back home.
Buyers double-checking a lender's quote
Double-check the cost a lender or broker already gave you.
Scope and assumptions
Use this calculator for early planning.
What it covers: a standard owner-occupied home purchase, a traditional down payment, published premium tiers and Ontario’s 8% tax on the premium. It does not confirm approval, eligibility or the insurer your lender will use.
Not a mortgage approval
Your income, debts, credit, property and lender rules are not assessed by this calculator.
Not every insurance product is included
Special programs, borrowed down payments, premium credits, refinancing and rental-property products may use different rules.
Confirm before making an offer
A licensed mortgage professional should confirm the premium, tax, mortgage terms and available amortization.
Often missed
Costs and rules to include in your buying budget.
Ontario tax is closing cash
Ontario’s 8% Retail Sales Tax applies to the insurance premium and is normally paid from your closing funds.
The standard insured price limit is below $1.5 million
For a standard insured home purchase, a property priced at $1.5 million or more normally requires at least a 20% down payment.
A 30-year mortgage changes the premium
An eligible 30-year insured mortgage adds 0.20 percentage points to the premium rate. It may lower the monthly payment but can increase total interest.
The minimum down payment is blended
You need 5% on the first $500,000 and 10% on the portion above $500,000 for a standard insured purchase below $1.5 million.
Planning tip
Moving from 5% to 10% down can reduce both the mortgage amount and the premium rate.
Planning tip
At 20% down, mortgage default insurance is usually not required for a standard purchase.
When to use it
Use the comparison at these planning stages.
Before house hunting
Get a rough idea of your insurance cost before you start touring homes above your comfort range.
Before finalizing your budget
Add your CMHC cost and Ontario tax to your down payment and other closing costs.
When deciding on amortization length
See what a 30-year mortgage adds to your estimated cost before you choose it.
When comparing down payment targets
Line up four down payment amounts side by side to see which one is worth saving toward.
When reviewing a lender's quote
Use this to double-check a number your broker or lender already gave you.
Did you know?
Most buyers add the CMHC premium to their mortgage and pay it off over time, but some lenders allow it to be paid upfront instead. Ontario’s tax on the premium is normally paid from closing funds and cannot be added to the insured loan amount.
Ontario planning notes
What Brampton and Mississauga buyers should remember.
The premium rules are federal, while Ontario’s tax on the premium affects the cash needed at closing. The same basic calculation applies to a standard purchase in Brampton, Mississauga and other Ontario communities.
Prices above $500,000 use a blended minimum
The minimum down payment is 5% on the first $500,000 and 10% on the portion above it, up to the standard insured price limit.
Keep the Ontario tax outside the mortgage
Add the 8% tax on the premium to your estimated closing funds rather than the financed mortgage balance.
Confirm properties near $1.5 million early
A small price change can affect whether a standard insured mortgage is available, so confirm the financing plan before making an offer.
CMHC insurance FAQ
Common questions about mortgage default insurance.
When is mortgage default insurance usually required?
It is usually required for a standard home purchase when the down payment is below 20%. The property, borrowers and mortgage must also meet the insurer and lender’s rules.
Is CMHC the only mortgage insurer?
No. CMHC is one provider. Sagen and Canada Guaranty also provide mortgage default insurance. Standard premium schedules may be similar, but product details and approval requirements can differ. Your lender or mortgage professional arranges the insurer.
How much is the standard insurance premium?
The premium is based on the base mortgage and the down payment. Standard rates are 4.00% for 5%–9.99% down, 3.10% for 10%–14.99% down and 2.80% for 15%–19.99% down. An eligible 30-year insured mortgage adds 0.20 percentage points.
Why does reaching a new down payment tier matter?
A larger down payment lowers the base mortgage. It may also reduce the premium rate, so the estimated savings can come from both changes.
Who may qualify for a 30-year insured mortgage?
A 30-year insured mortgage may be available when at least one borrower is a first-time home buyer or the home is newly built and not previously occupied. Other insured-mortgage and lender requirements still apply.
Is there a maximum price for a standard insured purchase?
Yes. For a standard insured home purchase, the purchase price must be below $1.5 million. A property priced at $1.5 million or more normally requires at least a 20% down payment.
Do I pay the insurance premium in cash?
The premium is usually added to the mortgage, although lender arrangements can vary. Adding it to the mortgage increases the balance and may result in interest being charged on the premium.
What is Ontario’s tax on the insurance premium?
Ontario charges 8% Retail Sales Tax on the mortgage-insurance premium. This tax is normally paid from the buyer’s closing funds and is not added to the mortgage.
Can I avoid mortgage default insurance?
For a standard purchase, mortgage default insurance is usually not required when the down payment is at least 20%. A lender may still require insurance in some situations.
Does a larger down payment always reduce the estimated cost?
A larger down payment normally reduces the mortgage amount and may lower the premium rate. The better choice still depends on your cash needs, closing costs and full financing plan.
Does this calculator replace mortgage advice?
No. It is a planning tool. A licensed mortgage professional should confirm eligibility, the insurer, the premium, mortgage terms and the final amount before you make a financing decision.
Buyer resources
Helpful pages for your buying budget.
Use these resources to connect the insurance estimate to monthly payments, closing costs and your buying plan.
Monthly payment
Mortgage Payment Calculator
See your full monthly payment and payment schedule, insurance included.
See calculator -> Closing costsLand Transfer Tax Calculator
Estimate your land transfer tax alongside your down payment and insurance costs.
See calculator -> First-time buyersFirst-Time Home Buyer GTA
A full walkthrough of budgeting for, financing, and buying your first home.
Read the guide -> Free guideBuyer's Guide
Download the full closing costs checklist and step-by-step buying guide.
Get the guide -> StrategyBook a Buyer Call
Talk through your budget, timeline and target areas with Gaurang.
Book a call -> QuestionsBuyer FAQ
Common buyer questions about financing, offers and closing.
Read FAQ ->Review your estimate
Ask Gaurang to review your comparison
Use the button above to copy your current scenarios into this form, or type your own question. Printing and using the calculator do not require your contact details.
Note: This page gives general real estate information only — it's not mortgage, legal, tax, or financial advice. Gaurang Shah is a Real Estate Broker with Team Shah Real Estate at Royal LePage Flower City Realty. Call or text (647) 892-2411, or email mail@myshahteam.com.
