Mortgage Loan Insurance

 

To obtain CMHC Mortgage Loan Insurance, lenders pay an insurance premium. Typically, your lender will pass these costs on to you. Your lender will give you the exact price when you apply for a mortgage.

The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan and is based on the size of your down payment. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums.

Remember: without mortgage insurance you may avoid the insurance premium but you’ll typically pay much higher interest rates and additional administrative fees. At the end of the day, for the vast majority of borrowers, the cost of CMHC Mortgage Loan Insurance is more than fully offset by the savings achieved.

Loan to Value Ratio
Standard Premium
Self Employed
w/o 3rd Party
Income Validation
Standard Premium
Self Employed
w/o 3rd Party
Income Validation
Up to & including 65% 0.50% 0.80% 0.50% 1.50%
Up to & including 75% 0.65% 1.00% 2.25% 2.60%
Up to & including 80% 1.00% 1.64% 2.75% 3.85%
Up to & including 85% 1.75% 2.90% 3.50% 5.50%
Up to & including 90% 2.00% 4.75% 4.25% 7.00%
Up to & including 95% 2.75% 6.00% 4.25%* *
90.01%-95% –
Non-Traditional Down Payment***
2.90% N/A * N/A

 

Extended Amortization Surcharges
Greater than 25 years, up to and including 30 years: 0.20%
Greater than 30 years ,up to and including 35 years: 0.40%

* Information taken from CMHC