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If your down payment is under 20%, this is the premium you'll pay for mortgage default insurance.
Minimum required down payment for this price: $30,000
Estimated CMHC premium
$20,400
Any time your down payment is under 20% of the purchase price (a 'high-ratio' mortgage), and the home is priced at $1.5 million or under — insurance isn't available above that price at all.
You do, even though it protects the lender if you default. The premium is usually added to your mortgage principal and paid off over your amortization, rather than paid upfront.
Yes — the premium rate rises in tiers as your loan-to-value ratio rises. Even within the same insured range, a 15% down payment gets a noticeably lower premium rate than a 5% down payment.
In some provinces (Ontario, Saskatchewan, Manitoba, Quebec), yes — provincial sales tax applies to the premium itself, and unlike the premium, that tax must be paid upfront rather than added to your mortgage.