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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:
- CMHC’s Eco Products offer a 25% partial premium refund when purchasing or building an energy efficient home or making energy efficient improvements. Learn more about our Eco products.
- 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.
- Some provinces (currently 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% | 4.00% | 6.30% |
| 90.01% to 95% with 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 schedule for CMHC Refinance
| Loan-to-Value Ratio | Premium on Total Loan Amount | Premium on increase to loan amount for Refinance |
|---|---|---|
| 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% |
Note: The premium is the lesser of:
- The rate applied to the Increase to Loan Amount; or
- The premium rate applied to the Total Loan Amount.
An amortization period beyond 25 years is subject to a 0.20% surcharge.
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:
- visit our page that details all our Mortgage Loan Insurance programs including information on our minimum requirements.
- learn about the benefits of mortgage loan insurance with our Quick Reference Guide to Mortgage Loan Insurance (PDF).
- contact your Client Relations Account Manager
- call our Underwriting Centre team at 1-888 GO emili (1-888-463-6454)
