Page 8 - Home Buying Guide
P. 8
Mortgage loan insurance & your down payment.
Your CMHC (or other insurer) mortgage insurance premium is based on the size of your down payment.
Canada Mortgage and Housing Corporation (CMHC) Mortgage
Loan Insurance protects the lender in the event of a default, and
is mandatory if your down payment is less than 20% of the
purchase price. Your CMHC premium is calculated as a
percentage of the mortgage amount, base on the relative size of
your down payment. Homes that cost $1,000,000 or more do not
require CMHC insurance because they must have a minimum
down payment of 20%.
You can find the CMHC Insurance calculator on line to determine
you r mortgage insurance costs.
Down payment CMHC Premium (%)
5% TO 9.99% 4.0%
10% TO 14.99% 3.1%
15% TO 19.99% 2.8%
20% or higher 0.0%
