CMHC Insured MortgageOntario. Smallest Down. Lowest Premium.Insured rates from 4.59%.

CMHC mortgage insurance (also called default insurance) protects the lender if a borrower stops paying. In Canada, it is mandatory on any mortgage where the down payment is less than 20% of the purchase price (high-ratio mortgage). The premium is paid by the borrower — usually added to the mortgage. CMHC, Sagen, and Canada Guaranty all offer this insurance. lendsimpl shops all three.

Premiums depend on your loan-to-value (LTV) ratio: 5% down (95% LTV) = 4.00% premium · 10% down (90% LTV) = 3.10% · 15% down (85% LTV) = 2.80% · 20% down (80% LTV) = 2.40% (only used on rare insured-refi or rental products). The premium is calculated on the mortgage amount and added to your principal — you do not pay it cash on closing.

Yes. Ontario charges 8% provincial sales tax (PST) on the CMHC premium amount. The PST is paid in cash at closing — it cannot be added to the mortgage. On a $500,000 mortgage with a 4.00% premium ($20,000), the Ontario PST is $1,600 due at closing. lendsimpl includes this in your closing-cost estimate upfront.

5% down on the first $500,000 of the purchase price, then 10% down on the portion above $500,000 up to $1.5M. Example: $800,000 home requires $55,000 down (5% × $500K + 10% × $300K). Homes over $1.5M require 20% down and cannot be insured.

Yes — typically 0.10–0.30% lower. Because the lender's risk is covered by the insurer, they can offer a sharper rate. That's why a 5%-down insured mortgage often beats a 20%-down conventional mortgage on rate (though you pay the premium). lendsimpl shows you the all-in cost both ways so you can compare.

Yes — putting 20% or more down on a purchase makes the mortgage 'conventional' and uninsured. You skip the premium entirely. However, your rate may be slightly higher than an insured rate. lendsimpl always runs both scenarios to show you the lowest total cost over your 5-year term.

No — CMHC insurance protects the lender, not you. If you default, CMHC pays the lender; you still owe the debt and lose the home. You pay the premium for the lender's protection. The benefit to you is access to the mortgage with less than 20% down and a sharper insured rate.

Yes. CMHC, Sagen, and Canada Guaranty all have newcomer programs that allow permanent residents (and some work-permit holders) to qualify with as little as 5% down. Requirements typically include valid status, employment income, and a Canadian credit history of 3–12 months. lendsimpl works with newcomer-friendly A-lenders across Ontario.

All three offer essentially identical premium rates and qualification rules — the difference is which lenders they partner with and how quickly they underwrite. Some lenders only use one insurer; others let us choose. lendsimpl picks the insurer-lender combo that gives you the lowest insured rate and the fastest approval for your file.

Generally no. CMHC purchase insurance is only for owner-occupied homes you're buying. CMHC does not insure standard refinances. Sagen and Canada Guaranty have very limited 'transactional' insured-refi products that most lenders do not use. lendsimpl will tell you immediately if your refinance qualifies or if a conventional uninsured option is the better path.