CMHC homeowner premiums; Sagen and Canada Guaranty price similarly. With 20 % down or more no insurance is required. The 30-year option is for first-time buyers or newly built homes.
If your down payment is less than 20 % of the purchase price, your lender needs mortgage default insurance. It protects the lender, not you, if the loan is not repaid. You pay for it through a one-time premium, which is usually added to the mortgage and repaid with it.
The premium is a percentage of the loan and depends on the loan-to-value ratio: 2.80 % of the loan with 15 % to 19.99 % down, 3.10 % with 10 % to 14.99 % down and 4.00 % with 5 % to 9.99 % down.
The minimum down payment is 5 % of the first 500,000 dollars and 10 % of the part above that. Insurance is only available for homes priced under 1.5 million dollars.
First-time buyers and buyers of newly built homes can choose a 30-year amortization, which adds 0.20 percentage points to the premium.
In Ontario, Quebec and Saskatchewan, provincial sales tax applies to the premium. It must be paid in cash at closing and cannot be added to the loan.
Enter the price, your down payment and your province to see the premium, the tax due at closing and the total mortgage. The rates are CMHC's; the two private insurers set their own, which are usually close.
Frequently asked questions
Can I avoid mortgage insurance?
Yes, by putting down at least 20 % of the purchase price. Below that, insurance is required for mortgages from federally regulated lenders, and you cannot borrow more than 95 % of the price.
How much is the sales tax on the premium?
In 2026 it is 8 % in Ontario, 9 % in Quebec and 6 % in Saskatchewan. Quebec's rate goes up to 9.975 % for premiums paid after December 31, 2026. The tax is due at closing and is often collected by your lawyer or notary.
What if the home costs 1.5 million dollars or more?
Mortgage default insurance is not available at that price, so you need a down payment of at least 20 %.
Indicative results. This is not financial advice.
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