CMHC mortgage loan insurance helps Approved Lenders offer insured financing at interest rates comparable to those generally reserved for borrowers with larger down payments. The application premiums are a one-time charge which may be added to the insured loan amount.

Factors affecting insurance premiums

The cost of mortgage loan insurance premiums may be impacted by one or more of the following factors:

  • Our Green Home program offers partial mortgage loan insurance premium refunds of up to 25%. Refunds are available directly to borrowers who buy, build or renovate for energy efficiency using CMHC-insured financing. Find out more with our Green Home Program.
  • The portability feature saves money for repeat users of mortgage loan insurance. The feature reduces or eliminates the premium payable on the new insured loan for the purchase of a subsequent home. Surcharges may apply. For example:
  • A blended amortization period is subject to a 0.60% surcharge. The surcharge is applied to the Increase to Loan Amount.
  • For homeowner loans, a conversion surcharge of 0.30% is applied to the outstanding balance if the loan insurance application is “converted” from a traditional to a non-traditional down payment application.
  • Some provinces (currently Manitoba, Ontario, Quebec and Saskatchewan) apply provincial sales tax to the mortgage loan insurance premium. The sales tax can’t be added to the loan amount.

Premium schedule for homeowner loans (owner-occupied property with 1–4 units)

Loan-to-Value Ratio Premium on Total Loan Amount Premium on Increase to Loan Amount for Portability*
Up to and including 65% 0.60% 0.60%
65.01% to 75% 1.70% 5.90%
75.01% to 80% 2.40% 6.05%
80.01% to 85% 2.80% 6.20%
85.01% to 90% 3.10% 6.25%
90.01% to 95% (traditional down payment) 4.00% 6.30%
90.01% to 95% (non-traditional down payment) 4.50% 6.60%

Premium schedule for small rental loans (non-owner occupied property with 2–4 units)

Loan-to-Value Ratio Premium on Total Loan Amount Premium on Increase to Loan Amount for Portability*
Up to and including 65% 1.45% 3.15%
65.01% to 75% 2.00% 3.45%
75.01% to 80% 2.90% 4.30%

* The premium is calculated by multiplying the applicable Premium Rate by the Total Loan Amount (less any available Premium Credits), or the applicable Premium Rate to the Increase to Loan Amount, whichever is less.

Premium credits

The portability feature may allow for a premium credit to reduce the premium payable on a new loan insurance application. The amount of the premium credit depends on how much time has elapsed from the original closing date of the existing CMHC-insured loan to the new request for loan insurance. For example:

  • 6 months from original closing date of existing CMHC-insured loan to new request for loan insurance = premium credit of 100% of premium previously paid for existing CMHC-insured loan
  • 12 months = 50% premium credit
  • 24 months = 25% premium credit

Find out more

For more information about CMHC mortgage loan insurance:

Date Published:: March 31, 2018