CMHC Insurance — Ontario 2026

What Is CMHC Mortgage Insurance and When Is It Required in Ontario?

CMHC mortgage default insurance is mandatory in Canada when your down payment is less than 20% on a home priced below $1,500,000. The premium is added to your mortgage: 4.00% for 5–9.99% down; 3.10% for 10–14.99% down; 2.80% for 15–19.99% down. In Ontario, an 8% PSTon the premium is paid at closing. CMHC insurance protects the lender — not you. lendsimpl (FSRA #13763) calculates your exact CMHC cost and advises on the most efficient down payment strategy across 50+ lenders.

CMHC Premium Schedule — Ontario 2026

Premium rates apply to all three Canadian default insurers (CMHC, Sagen, Canada Guaranty). Ontario PST of 8% on the premium is paid upfront at closing, not added to the mortgage.

Down Payment	Premium Rate	$500K Home	$700K Home	$900K Home
5% – 9.99%	4.00%	$19,000+$1,520 PST	$26,600+$2,128 PST	$34,200+$2,736 PST
10% – 14.99%	3.10%	$13,950+$1,116 PST	$19,530+$1,562 PST	$25,110+$2,009 PST
15% – 19.99%	2.80%	$11,900+$952 PST	$16,660+$1,333 PST	$21,420+$1,714 PST
20%+ Down	No insurance required	Conventional mortgage — no CMHC premium

*Premium is added to mortgage balance. Ontario PST is a closing cost paid upfront. Homes ≥$1,500,000 cannot use insured financing.

Key Facts About CMHC Mortgage Insurance in Ontario

Who it protects

The lender — not the borrower. If you default, the insurer pays the lender. You still owe the debt.

Who pays for it

The buyer pays the premium (added to mortgage) and the Ontario 8% PST on the premium (paid at closing).

Three approved insurers

CMHC (federal), Sagen (private), Canada Guaranty (private). All offer identical rates. Lenders choose which to use.

Maximum insured price

Homes priced $1,500,000 and above cannot use insured mortgages. Minimum 20% down required.

Insured rates are lower

Lenders charge lower interest rates on CMHC-insured mortgages. Insured rates start ~0.25% lower than uninsured in 2026.

30-year amort (new homes)

First-time buyers purchasing newly built homes can access 30-year amortization on insured mortgages (since Aug 2024).

How to Avoid CMHC Mortgage Insurance

1Save a 20% down payment — eliminates the CMHC premium entirely.
2Use FHSA ($40,000 lifetime) + RRSP HBP ($35,000/person) to reach 20% faster.
3Ask family for a gift — immediate family gifts are acceptable as down payment funds.
4Consider a lower purchase price where 20% down is achievable sooner.
5Purchase a newly built home and take advantage of 5% down + 30-year amortization if a first-time buyer.

Get Your Exact CMHC Cost Calculation — Free

lendsimpl (FSRA #13763) calculates your exact CMHC premium, Ontario PST, and total closing cost breakdown before you commit. Rated 4.9/5 from 1,820+ Ontario homebuyers.

Calculate My CMHC Cost — Free

CMHC Mortgage Insurance FAQ — Ontario 2026

How much is CMHC mortgage insurance on a $700,000 home with 5% down?▾

On a $700,000 home with 5% down ($35,000), your mortgage amount is $665,000. The CMHC premium at 4.00% = $26,600 added to your mortgage, making the insured mortgage $691,600. Ontario PST (8%) on the premium = $2,128 paid upfront at closing. Your monthly payment increases by approximately $141 compared to the same mortgage without CMHC insurance.

Is CMHC insurance required for homes over $1,000,000 in Ontario?▾

No. Homes priced at $1,500,000 and above cannot use CMHC insured mortgages. Those buyers must put a minimum of 20% down. For homes between $1,000,000 and $1,499,999, CMHC insurance became available in December 2024, allowing buyers to put as little as 5% on the first $500,000 and 10% on the remaining amount.

Can I avoid CMHC mortgage insurance in Ontario?▾

Yes. You can avoid CMHC insurance by putting 20% or more down on your purchase. You can also avoid CMHC on homes priced at $1,500,000 and above (mandatory 20% down). Conventional (uninsured) mortgages at A-lenders typically carry slightly higher rates than insured mortgages because the lender carries more risk without insurance.

Who pays for CMHC mortgage insurance — the buyer or the lender?▾

The buyer ultimately pays the CMHC premium. The premium is added to your mortgage principal, and you pay interest on it over the amortization. The Ontario PST on the premium is paid by the buyer at closing. The insurance itself protects the lender against default — it does not protect the buyer if they cannot make payments.

What is the difference between CMHC, Sagen, and Canada Guaranty?▾

CMHC, Sagen, and Canada Guaranty are the three government-approved mortgage default insurers in Canada. All three offer essentially identical premium rates and terms. CMHC is federal Crown Corporation. Sagen (formerly Genworth Canada) and Canada Guaranty are private companies. Lenders may choose which insurer to use — borrowers do not choose. All provide the same mortgage qualification and rate benefits.

Does CMHC insurance affect my mortgage interest rate?▾

Yes — CMHC insured mortgages actually receive BETTER rates than uninsured mortgages. Lenders charge lower rates on insured mortgages because the default risk is covered by the insurer. In May 2026, insured 5-year fixed rates start at 3.89% vs. uninsured rates starting at 4.14% — a 0.25% premium difference. This rate benefit partially offsets the insurance premium cost on smaller down payments.

What is the Ontario PST on CMHC premiums?▾

Ontario charges 8% Provincial Sales Tax (PST) on CMHC, Sagen, and Canada Guaranty mortgage insurance premiums. This tax is NOT added to your mortgage — it must be paid upfront at closing. For example, on a $700,000 home with 5% down: CMHC premium = $26,600 × 8% = $2,128 PST due at closing. Budget for this cost on top of your down payment, legal fees, and land transfer tax.

Can I get a 30-year amortization with CMHC insurance in Ontario?▾

Yes, but only for first-time home buyers purchasing newly constructed homes. The Canadian government introduced 30-year amortization on insured mortgages for first-time buyers in August 2024. Existing homes still have a maximum 25-year amortization for insured mortgages. Second-time buyers and rental properties are limited to 25 years for insured mortgages.