Question 1

When do I have to pay CMHC insurance?

Accepted Answer

Mortgage default insurance is required whenever your down payment is less than 20% of the purchase price. It protects the lender, not you. As of December 15, 2024, it's only available on purchases up to $1,500,000.

Question 2

How much is the CMHC premium?

Accepted Answer

The premium is a percentage of your loan amount based on your loan-to-value ratio: 2.40% at 80% LTV, 2.80% at 85%, 3.10% at 90%, and 4.00% at 95%. A 30-year amortization adds a 0.20% surcharge.

Question 3

Do I have to pay PST on the CMHC premium?

Accepted Answer

Yes, in Ontario (8%), Quebec (9.975%), Saskatchewan (6%), and Manitoba (7%). Unlike the premium itself, the PST is paid in cash at closing — it cannot be financed into the mortgage.

Question 4

Can I get a 30-year insured mortgage?

Accepted Answer

Yes, but only if you are a first-time home buyer purchasing a newly built home (federal rule effective August 2024, expanded December 2024). The premium increases by 0.20%.

Question 5

What's the minimum down payment in Canada?

Accepted Answer

5% on the first $500,000 of the purchase price, plus 10% on any portion above $500,000 up to $1,500,000. Above $1,500,000 you must put down 20% on the entire price.

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