CMHC mortgage insurance: premiums and rules

The standard premiums

CMHC, Sagen and Canada Guaranty charge the same standard rates, by loan-to-value: 0.60% up to 65%, 1.70% to 75%, 2.40% to 80%, 2.80% to 85%, 3.10% to 90% and 4.00% to 95%. A borrowed down payment costs 4.50%.

With 5% down on a $500,000 home, the $475,000 loan carries a 4.00% premium: $19,000, added to the mortgage.

30-year amortizations

Insured mortgages are limited to 25 years, except for first-time buyers and anyone buying a newly built home, who can take 30 years since December 15, 2024. The longer amortization adds 0.20% to the premium.

Insured, insurable and uninsured

An insured mortgage has less than 20% down and the borrower pays the premium. An insurable one has 20% or more down but still meets the insurers' rules, so the lender can insure it in bulk, usually at a slightly higher rate than insured. Everything else is uninsured and usually priced higher again: refinances, homes of $1.5 million or more, and rentals.

Tax and refunds

The premium can be financed; the provincial sales tax on it can't. It's 8% in Ontario, 9% in Quebec and 6% in Saskatchewan, paid at closing. Energy-efficient homes can get 25% of the premium refunded under the insurers' green programs.