Mortgage Insurance Premium Calculator
Calculate CMHC, Sagen, and Canada Guaranty insurance premiums for properties with less than 20% down payment. Determine your eligibility category and understand how insurance affects your mortgage.
Enter Property Details
Total purchase price or property value. Must be between $100,000 and $5,000,000.
Total time to pay off the mortgage. Default insured mortgages limited to 25 years; uninsured can be up to 30 years.
How you intend to use the property. Owner-occupied gets best rates and insurance eligibility.
Type of transaction. Purchase and new builds qualify for default insurance; refinances typically do not.
Province where property is located. Some provinces charge PST on insurance premiums (e.g., Quebec).
Understanding Mortgage Insurance in Canada
Default Insured
Lowest Rates- Property ≤$1,500,000
- 5-19.99% down payment
- Owner-occupied only
- Purchase or new build
- Max 25-year amortization
Rate Impact: 0.10% - 0.30% lower than insurable
Insurable
Moderate Rates- Property ≤$1,500,000
- 5-19.99% down payment
- Any occupancy type
- Purchase, switch, or refinance
- Max 25-year amortization
Rate Impact: 0.05% - 0.20% higher than default insured
Uninsured
Highest Rates- 20%+ down payment
- Property >$1,500,000 OR
- Amortization >25 years
- Any occupancy
- No insurance required
Rate Impact: 0.15% - 0.40% higher than default insured
📊 Premium Rate Table (All Insurers)
CMHC, Sagen, and Canada Guaranty all charge identical premium rates
| LTV Range | Down Payment | Premium Rate | Example ($500k Mortgage) |
|---|---|---|---|
| 95.01% - 100% | 5% - 9.99% | 4.00% | $20,000 |
| 90.01% - 95% | 10% - 14.99% | 3.10% | $15,500 |
| 85.01% - 90% | 15% - 19.99% | 2.40% | $12,000 |
| 80.01% - 85% | 15% - 19.99% | 1.70% | $8,500 |
| ≤80% | 20%+ | 0% | No Insurance |
💡 Why Does Mortgage Insurance Exist?
Mortgage insurance protects lenders if you default, allowing them to offer mortgages with as little as 5% down. Without it, most lenders would require 20% minimum, pricing many first-time buyers out of the market. The premium is based on risk: higher LTV (lower down payment) = higher premium.
Good news: Premiums are portable - if you switch lenders at renewal, your insurance transfers without paying again, as long as you don't increase your mortgage balance or amortization.
Related Resources & Guides
📖 Week 6 Playbook
Complete guide to understanding insured vs insurable vs uninsured mortgages and how they affect your rate.
Read the Complete Guide →📚 Insurance Guide
Deep dive into CMHC, Sagen, and Canada Guaranty - comparing insurers, portability rules, and approval criteria.
Explore Insurance Guide →📄 Premium Worksheet
Printable worksheet to calculate premiums manually and compare scenarios across different down payments.
Download PDF →Need to calculate your total closing costs including insurance?
Try our Closing Cost Estimator →Frequently Asked Questions
What is mortgage insurance in Canada and when is it required?
Mortgage insurance is required in Canada when you put down less than 20% on a property purchase. It protects lenders if you default on your mortgage. Three companies provide this insurance: CMHC (government-backed), Sagen, and Canada Guaranty. All charge the same premium rates based on your loan-to-value (LTV) ratio.
How much does CMHC mortgage insurance cost?
CMHC premium rates range from 0.60% to 4.00% of your mortgage amount, based on your down payment percentage. For example: 5% down = 4.00% premium; 10% down = 3.10% premium; 15% down = 2.40% premium. A $500,000 mortgage with 10% down would have a $15,500 premium (3.10%), added to your mortgage balance.
What is the difference between default insured, insurable, and uninsured mortgages?
Default Insured (lowest rates): Properties ≤$1.5M, 5-19.99% down, owner-occupied, purchase/new-build, ≤25yr amortization. Insurable (moderate rates): Same property limits but can be rental or refinance. Uninsured (highest rates): 20%+ down, properties >$1.5M, or >25yr amortization. Rate differences typically range from 0.10% to 0.40%.
Can I switch lenders if I have mortgage insurance?
Yes! Mortgage insurance premiums are portable. If you switch lenders at renewal, your insurance transfers without paying a new premium, as long as you maintain the same or lower mortgage balance, don't increase your amortization, and keep the same property. This is called premium portability.
What are the minimum down payment requirements in Canada?
Minimum down payment depends on purchase price: $0-$500k = 5% minimum; $500k-$1.5M = 5% on first $500k plus 10% on remainder; $1.5M+ = 20% minimum (insurance not available). For example, a $750,000 home requires $50,000 down minimum (5% × $500k + 10% × $250k = $25k + $25k).
Do I pay the insurance premium upfront or add it to my mortgage?
The insurance premium is typically added to your mortgage balance, so you finance it over your amortization period rather than paying upfront. This means you'll pay interest on the premium amount over time. For example, a $15,000 premium on a 25-year mortgage costs approximately $90-100/month in your payment.
Disclaimer: This calculator provides estimates only and should not be considered financial advice. Premium rates and eligibility rules reflect the December 15, 2024 rule changes (insured mortgage cap raised to $1.5M) and are subject to change. Actual insurance premiums, eligibility, and mortgage rates depend on lender underwriting, insurer approval, credit score, income verification, and property appraisal. Consult with a licensed mortgage professional for personalized advice.