Toronto Condo Team
CMHC Insurance Calculator
See What Your Premium Could Cost Estimate your mortgage default insurance premium, compare different down payments, and see how the cost may affect your mortgage and Toronto or GTA buying plan.
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CMHC Insurance Calculator
Enter your purchase price and down payment below to estimate your mortgage insurance premium and Ontario sales tax.
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Calculate Your CMHC Mortgage Insurance
Buying with less than 20% down can reduce the amount of cash you need upfront, but it can also add mortgage default insurance to the cost of your purchase. Our CMHC insurance calculator helps you estimate that premium using the purchase price and down payment you are considering.
We can then help you put that number into context. You can compare different down-payment options, estimate the mortgage you may carry after insurance, account for closing costs, and see how the complete financial picture fits your Toronto or GTA property search.
This calculator helps you estimate:
- Mortgage default insurance premium
- Ontario sales tax on the premium
- How different down payments change the premium
- Comparison across multiple scenarios
- Total mortgage after premium is added
- Impact on your overall buying budget
The value is not just in seeing one number. It is in being able to change the assumptions and understand how each decision may affect the premium and your total financing.
Understanding the Basics
What Is CMHC Mortgage Insurance?
CMHC mortgage loan insurance is commonly referred to as CMHC insurance or mortgage default insurance. It allows eligible buyers to finance qualifying purchases with less than a 20% down payment while protecting the mortgage lender against losses if the borrower defaults. It is not life, disability, or mortgage-payment protection for the borrower.
That distinction matters. Mortgage default insurance relates to the financing of the purchase. Personal mortgage protection, life insurance, and disability insurance are different products.
When we help you evaluate a purchase, our focus is what mortgage default insurance means for the numbers that matter to your home search: your down payment, mortgage amount, estimated payment, closing cash, and overall buying budget.
Mortgage Default Insurance
Protects the lender if the borrower cannot repay. Required for high-ratio mortgages.
Life or Disability Insurance
Optional personal coverage that protects you and your family, not the lender.
Mortgage Payment Protection
Different product that may cover payments during job loss or illness.
When It Applies
When Does CMHC Insurance Apply?
Down payment is one of the main factors. Under current CMHC rules, mortgage loan insurance is generally relevant when the loan-to-value ratio exceeds 80%, which normally means a down payment below 20%, subject to the purchase and borrower meeting the applicable qualification requirements.
$500,000 or Less
Minimum down payment
On purchases up to $500,000, the minimum required down payment is 5% of the purchase price.
$500,000 to $1.5M
Tiered minimum
5% on the first $500,000, plus 10% on the remaining amount above $500,000.
$1.5M or More
No CMHC insurance
CMHC mortgage loan insurance is not available. Minimum 20% down payment required.
Still deciding how much to put down?
Our Down Payment Calculator is a useful place to start. It shows how much cash you may need upfront and how different contributions change your mortgage and buying power.
Understanding the Cost
How Much Does CMHC Insurance Cost?
The premium is not a single flat fee. CMHC calculates the premium as a percentage of the insured loan. The applicable percentage varies with the loan-to-value ratio and financing circumstances.
Under the current standard homeowner schedule, premium rates range from 2.80% to 4.00% for traditional down-payment scenarios. The basic relationship looks like this:
Our mortgage default insurance calculator handles the estimate so you can focus on what the result means for your budget.
See How Your Down Payment Changes the Premium
If you have more than the minimum amount available, we recommend comparing several down-payment scenarios. The amount you put down changes how much of the property's value needs to be financed, and that can change both the underlying mortgage and the insurance premium.
It is one of the biggest decisions in your purchase plan, so it is worth taking the time to run the numbers together and see which path keeps you comfortable. A little planning now can make the whole purchase feel more in reach.
Smaller Down Payment
Putting less money down can mean:
- More cash remains available upfront
- A larger base mortgage
- A higher loan-to-value ratio
- A potentially higher mortgage insurance premium
Larger Down Payment
Putting more money down can mean:
- A smaller base mortgage
- A lower loan-to-value ratio
- A lower insurance premium where applicable
- Less cash remaining after the purchase
20% Down
With 20% or more down:
- Standard high-ratio insurance generally not required
- Lower overall mortgage amount
- No CMHC premium to finance or pay
- More equity from day one
We do not treat 20% as proof that every buyer should automatically aim for it. The more useful question is: How much can we comfortably put down while keeping enough money available for closing, ownership, and the rest of our financial priorities? That is why comparing scenarios can be more useful than focusing solely on eliminating the premium.
The mortgage insurance premium can generally be paid upfront or added to the insured mortgage. If it is financed, the numbers can look like this:
Then
That distinction is important because the premium can affect more than the initial cost of insurance. When it is added to the mortgage, the resulting financed amount can also affect the mortgage payment over the full amortization period.
Once you have your estimated premium, our Mortgage Calculator can help you compare the payment at different rates and amortizations with the premium included.
Ontario buyers have an additional detail to consider. CMHC states that Ontario applies provincial sales tax to mortgage loan insurance premiums. That sales tax cannot be added to the insured mortgage amount, even when the insurance premium itself is financed.
That means it is useful to separate the mortgage insurance premium, which may be financed, from the applicable Ontario sales tax on the premium, which needs to be considered as part of your available purchase cash.
Mortgage Insurance Premium
This premium may be added to your mortgage and financed over the amortization period.
Example: $20,925 premium on a $675,000 mortgage can be included in your total mortgage amount.
Ontario Sales Tax (8%)
This tax must be paid upfront at closing. It cannot be financed as part of the mortgage.
Example: 8% of $20,925 = $1,674 payable at closing, in addition to your other closing costs.
Depending on the property, you may also need cash for:
- Ontario land transfer tax
- Title insurance
- Toronto Municipal Land Transfer Tax where applicable
- Property adjustments
- Legal fees and disbursements
- Moving costs
- Other closing expenses
For a Toronto condo purchase, mortgage insurance is only one part of the financial picture. We help you consider the financing alongside the actual monthly costs attached to the property.
A premium on paper rarely captures what homeownership actually feels like — or what it costs month to month once you are living there. The real payoff is the life you build inside the condo.
Those can include:
- Mortgage payment
- Utilities not included in maintenance fees
- Condo maintenance fees
- Parking expenses where applicable
- Property taxes
- Other recurring ownership costs
- Home insurance
Two Toronto condos with similar purchase prices can still create different monthly budgets because the maintenance fees, taxes, and building costs can vary. That is why we do not stop with the number produced by a CMHC insurance calculator. We help you connect that number to the condo you are actually considering.
An insurance calculation answers: "What could the mortgage default insurance premium be?" Affordability answers: "What overall purchase range may fit our finances?" Those are different questions.
CMHC Insurance Calculation
Focuses on the premium amount based on purchase price and down payment. It tells you the cost of financing with less than 20% down.
Mortgage Affordability
Considers your complete financial picture including income, debts, property taxes, and condo fees to find a comfortable purchase range.
Affordability can depend on factors such as:
- Household income
- Interest rate
- Down payment
- Property taxes
- Existing debts
- Condo fees
- Mortgage amount
- Other housing expenses
Once you know the approximate insured mortgage, our Mortgage Affordability Calculator can help you consider whether the complete purchase fits your broader financial picture.
We prefer to help you identify a comfortable property range, not simply the largest mortgage amount available.
Compare the Complete Buying Scenario
A single calculator rarely tells the whole story. We have organized our financing tools so you can work through the purchase in a logical sequence.
Together, these calculations can give you a clearer answer to the question that matters most: What will it take to buy and comfortably carry the property?
Turn Your CMHC Insurance Estimate Into a Buying Plan
The premium estimate becomes more valuable when we connect it to the rest of your purchase plan.
A Practical Sequence
Calculate the insurance premium
Compare down-payment options
Estimate the resulting mortgage
Calculate the mortgage payment
Plan closing costs
Check comfortable affordability
Search Toronto and GTA properties
The goal isn't just closing the deal — it's starting the next chapter. If you are still deciding how much to put down, start by comparing the down-payment options. If your financing range is already taking shape, we can help you see what it may buy.
See What Your Budget Can Buy in Toronto and the GTA
Once your financing becomes clearer, we can help you connect those numbers to the market. Your search might include Toronto condos, lofts, townhomes, semi-detached homes, detached homes, new developments, and properties throughout the GTA.
The same buying budget can create different options depending on neighbourhood, property type, maintenance fees, taxes, and other ownership costs. We help you compare those options against the mortgage and monthly costs you are comfortable carrying.
Ready to Take the Next Step?
Ready to See What CMHC Insurance Could Mean for Your Purchase?
Start with your estimated premium. Then compare your down payment, mortgage payment, total buying costs, and Toronto or GTA property options.