Free calculator · Closing Costs & Insurance
CMHC Mortgage Insurance Calculator
Estimate the mortgage default insurance premium on a high-ratio mortgage based on your loan-to-value ratio and amortization.
Estimate your mortgage default insurance premium
When your down payment is under 20%, your mortgage must be insured against default. This tool estimates the premium using the published loan-to-value tiers and the surcharge that applies to amortizations longer than 25 years. Premiums are set by CMHC, Sagen, and Canada Guaranty at the same rates.
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Estimates only. This is not a quote, pre-approval, or approval. Premium rates, surcharges, and eligibility rules change — confirm the current premium with CMHC or your lender before you rely on it.
How this is calculated
The loan-to-value ratio is the mortgage amount divided by the purchase price. The premium rate is then chosen from the published tiers, where the rate applies to the entire loan, not just the portion above a threshold: up to 65% LTV 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%, and 90.01% to 95% 4.00%. A non-traditional down payment raises the rate to 4.50% above 90% LTV. An amortization longer than 25 years adds a surcharge, shown here as an editable 0.20 percentage point default. The premium is the loan amount multiplied by the total rate, and the mortgage becomes the loan plus the premium if you finance it.
Why the loan-to-value tier matters
The tiers are cliffs, not a slope. Landing exactly at 80% LTV puts you in the 2.40% tier, while one dollar more of borrowing can push you to 2.80% applied to the whole loan. Near a boundary, a slightly larger down payment can save thousands in premium. That is why the tier, not just the loan size, drives the cost.
How the premium is paid
Most borrowers add the premium to the mortgage, so it is amortized over the life of the loan and you pay interest on it. Some provinces charge sales tax on the premium that cannot be added to the mortgage and must be paid in cash at closing. Paying the premium up front instead of financing it lowers your balance and total interest.
Confirm the current premium
- Premium rates and surcharges are reviewed periodically, so verify the current figures with CMHC or your lender.
- Default insurance is required above 80% LTV and is not available on homes priced at or above $1.5 million.
- Low-ratio coverage below 80% LTV is optional and usually arranged by the lender.
- Provincial sales tax on the premium varies by province.