Mortgage Tips: What is CMHC Insurance?

Canada Mortgage and Housing Corporation (CMHC) mortgage loan insurance is required when you purchase a home with less than 20% down payment. 

This insurance protects your lender in case you can't make payments.

 

- Allows a mortgage with as little as 5% down payment

- Ensures best interest rates despite smaller down payment 

 

- Purchase price of $500k or less, a min 5% down payment is required

- Purchase price exceeding $500k requires 5% on the first $500k and 10% on the remainder

- CMHC insurance is capped at purchases of $999,999 

 

- Calculated as a percentage of the mortgage, based on down payment size

- Payment options include a lump sum or adding it to your mortgage payments