CMHC Mortgage Insurance Calculator
Calculate your CMHC mortgage default insurance premium, monthly payments, and B-20 stress test qualifying rate. Essential for Canadian home buyers with less than 20% down.
Purchase price of the home
Minimum 5% on first $500K, 10% on $500K-$999K, 20% on $1M+
Your contracted mortgage rate
Maximum 25 years for insured (high-ratio) mortgages
Down Payment
CMHC Insurance
Mortgage & Payments
B-20 Stress Test
You must qualify at the higher of your contract rate + 2% or 5.25%
How It Works
1. Enter Details
Input the home price, your down payment amount, mortgage rate, and amortization period.
2. See Insurance Cost
The calculator determines if CMHC insurance is required and calculates the exact premium based on your LTV.
3. Check Stress Test
See your B-20 stress test qualifying rate and what payment your lender will use to assess affordability.
CMHC Premium Rates
Standard Premium Rates (25-Year Amortization)
The CMHC premium is added to your mortgage principal and paid off over the life of the loan. You do not pay the insurance premium upfront as a lump sum.
Frequently Asked Questions
Understanding CMHC Mortgage Insurance in Canada
CMHC mortgage default insurance is a unique feature of the Canadian housing market. Unlike private mortgage insurance (PMI) in the United States, which can often be removed once equity reaches 20%, CMHC insurance premiums are added to the mortgage principal and amortized over the full life of the loan. Understanding how this insurance works is essential for any Canadian home buyer, real estate professional, or anyone preparing for a Canadian real estate licensing exam.
How CMHC Insurance Premiums Are Calculated
The CMHC insurance premium is based on the loan-to-value (LTV) ratio of your mortgage. A higher LTV (meaning a smaller down payment) results in a higher premium rate. The premium is calculated as a percentage of the mortgage amount (not the home price) and is added to your mortgage. For example, on a $500,000 home with 5% down ($25,000), the mortgage is $475,000 and the CMHC premium at 4.00% is $19,000, bringing your total mortgage to $494,000. This additional amount increases your monthly payments slightly but allows you to buy a home much sooner than saving for 20% down.
The B-20 Stress Test Explained
Since 2018, all Canadian mortgage applicants at federally regulated lenders must pass the B-20 stress test. This means your lender will qualify you at a rate that is the higher of your actual contract rate plus 2 percentage points or the benchmark rate of 5.25%. If your contract rate is 5.5%, your qualifying rate would be 7.5% (since 5.5% + 2% = 7.5%, which exceeds 5.25%). The stress test significantly reduces your maximum borrowing power and is designed to ensure borrowers can withstand interest rate increases.
First-Time Home Buyer Programs
Canada offers several programs to help first-time buyers. The First-Time Home Buyer Incentive (FTHBI) provides 5-10% of the purchase price as a shared equity mortgage from CMHC. The Home Buyers' Plan (HBP) allows you to withdraw up to $60,000 from your RRSP tax-free for a down payment. The First Home Savings Account (FHSA) combines features of RRSPs and TFSAs for saving towards a first home. These programs can be combined with CMHC insurance to make homeownership more accessible.
CMHC vs Sagen vs Canada Guaranty
While CMHC is the most well-known provider, Sagen (formerly Genworth) and Canada Guaranty also offer mortgage default insurance in Canada. All three are backed by the Government of Canada and offer similar premium rates. Your lender typically chooses which insurer to use, and the cost to you is generally the same regardless of provider. The key differences are in their underwriting criteria and programs for self-employed borrowers or non-traditional income situations.
Calculate Your Total Closing Costs
CMHC insurance is just one closing cost. Calculate your land transfer tax too.
Land Transfer Tax Calculator