CMHC Insurance & Minimum Down Payment Calculator

Minimum down payment rules in Canada

The minimum down payment is tiered. You need 5% of the first $500,000 of the purchase price and 10% of the portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more cannot be insured, so they require at least 20% down. For a $650,000 home, the minimum is $25,000 plus $15,000 (10% of $150,000), or $40,000 — about 6.15% of the price.

How the insurance premium is calculated

When you put down less than 20%, your lender must insure the mortgage against default through CMHC or a private insurer. The premium is a percentage of the mortgage amount (not the home price), and the percentage depends on your loan-to-value ratio. It is usually added to the mortgage rather than paid upfront, so you pay interest on it over the amortization. Eligible 30-year insured amortizations carry an extra 0.20%.

Worked example: on a $650,000 purchase with $50,000 down, the mortgage is $600,000 and the loan-to-value is 92.31%, which falls in the 90.01%–95% tier at 4.00%. The premium is $24,000, bringing the insured mortgage to $624,000. In Ontario, 8% provincial sales tax on the premium — $1,920 — is due in cash at closing and cannot be added to the mortgage.

Is it worth waiting to save 20%?

Not always. The premium protects the lender, not you, but it is what allows buyers to enter the market with as little as 5% down — and insured mortgages often come with lower interest rates than uninsured ones because the lender's risk is lower. Use the "extra monthly cost" line above to see what the premium really costs per month, and compare that against how long it would take you to save the additional amount needed to reach 20%. Our CMHC mortgage insurance guide walks through this trade-off in detail.

Frequently asked questions

Can I get the premium refunded? The premium is non-refundable, but if you port your mortgage to a new home some insurers offer a premium credit. Ask your lender.

Which provinces charge sales tax on the premium? Ontario, Quebec, and Saskatchewan apply provincial sales tax to mortgage insurance premiums. This calculator shows the Ontario amount.

Can gifted money be my down payment? Yes. Gifts from immediate family are generally accepted with a signed gift letter confirming the funds do not need to be repaid. First Home Savings Account and RRSP Home Buyers' Plan withdrawals can also be used — see our FHSA and Home Buyers' Plan guide.