What are CMHC Insured Mortgages?

Couple applying for a personal loan

To purchase a home in Canada, you are required to have a minimum of 5% of the purchase price as a down payment. If your down payment is below 20% of the purchase price, your mortgage is defined as high ratio and requires mortgage default insurance. The premium for this insurance can either be paid up front or added to your mortgage.

A CMHC insured mortgage allows all buyers who do not have a 20% down payment to enjoy the benefits of home ownership and begin building equity in a home. For mortgages that are CMHC insured, the maximum amortization is 25 years, compared to 30 years for a non-CMHC insured mortgage.


The CMHC mortgage default insurance premium depends on the percentage of the down payment, as follows:

Down Payment          CMHC Insurance Premium

5.00% - 9.99%             4.00% of mortgage balance
10.00% - 14.99%         3.10% of mortgage balance
15.00% - 19.99%         2.80% of mortgage balance

To learn more about CMHC insured mortgages, contact a Cambrian Lending Specialist.