How the CMHC Insurance Calculator works
Estimate mortgage default insurance for a Canadian home purchase. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this CMHC insurance calculator to estimate mortgage default insurance on a Canadian home purchase with a smaller down payment. It is useful for comparing different down payment amounts and seeing how insurance can affect the total mortgage.
Formula
Insured mortgage = purchase price - down payment + estimated insurance premium
- Purchase price is the home price.
- Down payment determines the loan-to-value ratio.
- Insurance premium is estimated from the down payment percentage.
Worked example
For a $600,000 home with a $50,000 down payment, the calculator estimates the mortgage amount, insurance premium and insured mortgage total.
Common mistakes
- Assuming the premium is paid separately when it may be added to the mortgage.
- Ignoring sales tax on insurance where applicable.
- Using an estimate before confirming insurer and lender requirements.
FAQs
When is mortgage default insurance required?
In Canada, it is commonly required when the down payment is below 20%, subject to lender and insurer rules.
Does CMHC insurance protect me?
It protects the lender if the borrower defaults, even though the borrower usually pays the premium.
Can a bigger down payment reduce the premium?
Yes. Higher down payment percentages can reduce or eliminate default insurance.