- Minimum down payment: 5% of the first $500,000, 10% of the portion from $500,000 up to $1.5 million, and 20% at $1.5 million or more.
- The insured price cap rose to $1.5 million on December 15, 2024.
- Since December 15, 2024, first-time buyers and buyers of new builds can amortize an insured mortgage over 30 years; otherwise the maximum is 25.
- CMHC premiums run from 0.60% to 4.00% of the loan (4.50% for a non-traditional down payment).
What is the minimum down payment in Canada?
FCAC’s down payment page sets out the minimums, which every big bank follows for insured lending.
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the price |
| $500,000 to under $1.5 million | 5% of the first $500,000 + 10% of the rest |
| $1.5 million or more | 20% (cannot be insured) |
What changed for insured mortgages on December 15, 2024?
The Department of Finance announced that, from December 15, 2024, the price cap for insured mortgages rose from $1 million to $1.5 million, and 30-year amortizations became available to all first-time buyers and to all buyers of new builds. CMHC’s Purchase product page says the price must be below $1,500,000 and the maximum amortization is 25 years, or 30 years through CMHC’s programs for first-time buyers and newly built homes.
FCAC summarizes the amortization rule: with less than 20% down, a maximum of 30 years if you are a first-time buyer and/or buying a new build, and 25 years in all other cases. With more than 20% down, your lender sets the maximum.
We found no change to the price cap, down payments or premium table after December 15, 2024 on the official pages checked; we will update this page if that changes.
How much is the CMHC insurance premium?
The premium is a percentage of the loan, based on the loan-to-value ratio. It is usually added to the mortgage.
| Loan-to-value | Premium |
|---|---|
| Up to 65% | 0.60% |
| 65.01% to 75% | 1.70% |
| 75.01% to 80% | 2.40% |
| 80.01% to 85% | 2.80% |
| 85.01% to 90% | 3.10% |
| 90.01% to 95% | 4.00% |
| 90.01% to 95%, non-traditional down payment | 4.50% |
Is there a surcharge or sales tax on the CMHC premium?
CMHC announced a 0.20% surcharge for qualified first-time buyers who choose a 30-year amortization, effective August 1, 2024, and its premium information page shows a 0.20% surcharge for amortizations beyond 25 years. Ask your lender how it applies to your file.
Some provinces charge provincial sales tax on the premium, and it cannot be added to the mortgage, so you pay it at closing. CMHC lists Quebec, Ontario and Saskatchewan; FCAC lists Ontario, Manitoba and Quebec. The two official sources disagree, so confirm with your lender or lawyer.
How do you qualify for an insured mortgage?
CMHC qualifies you at the greater of your contract rate + 2% or 5.25%, with GDS up to 39% and TDS up to 44% and a minimum credit score of 600 for at least one borrower. See the stress test.
How does a bigger down payment change your CMHC premium?
The premium is charged on the whole loan, and the rate drops as your loan-to-value falls. On a $700,000 home, going from the minimum $45,000 down to 10% down takes $25,000 more cash and cuts the premium from $26,200 to $19,530. At 20% down, insurance is no longer required.
| Down payment | Amount | Loan before premium | Loan-to-value | Premium | Insured loan |
|---|---|---|---|---|---|
| Minimum | $45,000 | $655,000 | 93.57% | 4.00% = $26,200 | $681,200 |
| 10% | $70,000 | $630,000 | 90.00% | 3.10% = $19,530 | $649,530 |
| 15% | $105,000 | $595,000 | 85.00% | 2.80% = $16,660 | $611,660 |
| 20% | $140,000 | $560,000 | 80.00% | not required | $560,000 |
Do insured mortgages get lower rates at the big banks?
Often, because the default risk sits with the insurer. Four of the six banks published a separate 5-year special for insured (high-ratio) mortgages on November 2, 2026, and at each it was 0.15 to 0.45 points below the bank’s regular 5-year special. The lower rate doesn’t make the insurance free: the premium is added to what you owe and you pay interest on it.
| Bank | Insured 5-yr special | Regular 5-yr special | Difference |
|---|---|---|---|
| RBC | 4.84% | 5.14% | 0.30 pts |
| BMO | 4.99% | 5.14% | 0.15 pts |
| CIBC | 4.99% | 5.34% | 0.35 pts |
| National Bank | 4.69% | 5.14% | 0.45 pts |
What changes when you put down 20% or more?
With 20% or more down, mortgage default insurance isn’t required, so there is no premium and no provincial sales tax on one. Your lender sets the maximum amortization instead of the insured 25- or 30-year limits, and you still qualify at the greater of your rate + 2 points or 5.25% (OSFI’s rule for uninsured mortgages). Homes priced at $1.5 million or more always need at least 20% down.
What should you ask your lender about mortgage insurance?
- Which insurer it will use (CMHC or a private insurer), since premium tables can differ.
- The exact premium, whether it will be added to the mortgage, and whether provincial sales tax on it is due at closing in your province.
- Whether the 0.20% surcharge applies if you choose 30 years.
- Whether its insured special needs a particular amortization; RBC and BMO, for example, show separate specials for 25 years or less and over 25 years.
Worked example: a $650,000 home with 10% down
Minimum down would be $40,000; with $65,000 down the loan is $585,000 (90% loan-to-value), so the CMHC premium is 3.10% = $18,135, added to the mortgage for $603,135.
At CIBC’s 4.99% high-ratio 5-year special (November 2, 2026): $3,504.43 a month over 25 years. A first-time buyer choosing 30 years pays the 0.20% surcharge too (premium $19,305) and $3,221.51 a month, but about $107,245 more interest over the life of the loan if the rate stayed the same.
| 25 years | 30 years | |
|---|---|---|
| Premium | $18,135 | $19,305 |
| Monthly payment | $3,504.43 | $3,221.51 |
| Total interest (same rate throughout) | $448,194 | $555,439 |
Computed by this site’s engine from each bank’s published rates (November 2, 2026) and the rules cited below. An example, not a quote.
What this means for you
- Under 20% down, insured rates are often lower than uninsured ones, but the premium is part of your cost.
- Provincial sales tax on the premium (Ontario, Quebec and others) is paid at closing, not added to the mortgage.
- 30 years lowers the payment and helps you qualify, at the price of more total interest.
- Check the first-time buyer guide and the stress test.
Rules change. Every figure on this page links to the official source and shows when we checked it. If something looks out of date, tell us and we will re-check.
Frequently asked questions
How much is the CMHC premium on a $600,000 home with 10% down?
Minimum down is $35,000 (5% of $500,000 + 10% of $100,000). With $60,000 down (10%), the loan is $540,000 at 90% loan-to-value, so the premium is 3.10% = $16,740, usually added to the mortgage. Provincial sales tax may apply on top.
Can I get insurance on a $1.6 million home?
No. Homes priced at $1.5 million or more need at least 20% down and cannot be insured.
Is CMHC the only insurer?
No. Banks also use private mortgage default insurers. The rules on price cap, down payment and amortization are federal and apply to all insured mortgages; premium tables can differ between insurers.
Sources
- Saving for a down payment and mortgage loan insurance — FCAC, checked Oct 31, 2026
- Boldest mortgage reforms in decades come into force today — Department of Finance Canada, checked Oct 31, 2026
- CMHC Purchase: homeowner mortgage loan insurance — CMHC, checked Oct 31, 2026
- CMHC mortgage loan insurance cost — CMHC, checked Oct 31, 2026
- Premium information for homeowner and small rental loans — CMHC, checked Oct 31, 2026
- CMHC revises homeowner mortgage loan insurance premiums — CMHC, checked Oct 31, 2026
- Mortgage terms and amortization — FCAC, checked Oct 31, 2026
- Mortgage rates — RBC Royal Bank, checked Nov 2, 2026
- Today’s mortgage rates — BMO, checked Nov 2, 2026
- Mortgage rates across Canada — CIBC, checked Nov 2, 2026
- Mortgage rates — National Bank, checked Nov 2, 2026
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.
