What is CMHC insurance and do I need it?
by Scott Moore, Realtor | July 25, 2025In Canada, most homebuyers will encounter Canada Mortgage and Housing Corporation (CMHC) mortgage insurance at some point in their home-buying journey.
CMHC insurance is designed to protect lenders in case you’re unable to make your mortgage payments. Essentially, if your down payment is less than 20%, CMHC insurance helps reduce the risk for lenders.
CMHC insurance is required for all mortgages where the borrower has a down payment of less than 20%. Here are some details to keep in mind:
Homes under $500,000: A minimum down payment of 5% is required.
Homes over $500,000: You’ll need 5% down on the first $500,000, and 10% on the remainder.
Homes over $1.5 million: CMHC insurance is not available.
If you’re required to get CMHC insurance, the cost is added to your mortgage. The premium is typically calculated as a percentage of the loan amount and depends on the size of your down payment. The smaller your down payment, the higher your premium will be. You can find premium rates here.
CMHC insurance can make homeownership more accessible for those with smaller down payments, as lenders may be more willing to take on the risk. If CMHC will not insure your home, there are two other insurers: Sagen and Canada Guarantee — the premiums are identical to CMHC and can provide an additional option for you, if needed.
If you have any questions or want to know how much your premiums might be, we recommend connecting with a trusted mortgage broker. Marc Rouire at Castle Mortgage is our go-to expert and he has helped hundreds of clients including many of our realtors.
If you’re thinking of buying a home, reach out now. We’d love to work with you!