What are the general requirements to qualify for homeowner mortgage loan insurance?

Find out which requirements you must meet to qualify for CMHC's Homeowner Mortgage Loan Insurance.

The home is located in Canada.
The purchase is not subject to any prohibition under the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
For CMHC-insured mortgage loans, the maximum purchase price / lending value or as-improved property value must be below $1,500,000 for homeowner loans and $1,000,000 for small rental loans.
You will typically have a minimum down payment starting at 5%. For a purchase price of $500,000 or less, the minimum down payment is 5%. When the purchase price is above $500,000, the minimum down payment is 5% for the first $500,000 and 10% for the remaining portion.
There are two types of down payments – Traditional and Non-traditional. Traditional down payments can come from sources such as savings, the sale of a property or a non-repayable financial gift from a relative.
Non-traditional down payments must be arm’s length and not tied to the purchase and sale of the property, either directly or indirectly. Non-traditional sources could include unsecured personal loans or unsecured lines of credit.  This is available for 1- or 2-unit properties with an loan to value of 90.01% to 95%, for borrowers with a strong credit management history. Non-permanent residents and loans under the chattel loan insurance product are not eligible.
Your total monthly housing costs, including Principal, Interest, Property Taxes, Heating (P.I.T.H.), the annual site lease in the case of leasehold tenure and 50% of applicable condominium fees, shouldn’t represent more than 39%* of your gross household income (Gross Debt Service (GDS) ratio). Use the GDS form to calculate how much you can afford in housing costs to be eligible.
Your total debt load shouldn’t be more than 44%* of your gross household income. The Total Debt Service (TDS) ratio is your P.I.T.H. + the annual site lease in the case of leasehold tenure and 50% of condominium fees (if applicable) + payments on all other debt / gross annual household income. Add up your costs and determine your Total Debt Service ratio using the TDS form.
You also need to think about closing costs (for example, legal and land transfer fees) equivalent to 1.5% to 4% of the purchase price. Many first-time buyers are surprised by these costs. That is why, when qualifying for CMHC’s Mortgage Loan Insurance, our Home Purchase Cost Estimate worksheet form will help you calculate your total homebuying costs.

Closing costs include but are not limited to one-time items such as lawyer fees, GST and PST as applicable, land transfer tax if applicable, adjustments, etc., to allow you to complete the house purchase.