The minimum down payment. For a one-unit owner-occupied home, the minimum is 5% of the first $500,000 of the lending value plus 10% of the remainder, up to a purchase price below $1,500,000. At $1,500,000 or more, mortgage loan insurance is not available and the minimum down payment is 20% of the price. A $650,000 home needs at least $25,000 plus $15,000, which is $40,000. A $500,000 home needs $25,000.
The premium tiers. The premium is a percentage of the loan, not the price, set by the loan-to-value ratio, which is the loan divided by the price. The Canada Mortgage and Housing Corporation's homeowner schedule is 0.60% up to and including 65% loan-to-value, 1.70% from 65.01% to 75%, 2.40% from 75.01% to 80%, 2.80% from 80.01% to 85%, 3.10% from 85.01% to 90%, and 4.00% from 90.01% to 95%. A non-traditional down payment in the top band pays 4.50%. A 30-year amortization adds 0.20 percentage points to the premium rate. The premium is a one-time charge that may be added to the insured loan amount, so you pay interest on it over the whole amortization.
When no premium applies. With 20% down or more, no mortgage loan insurance is required on a standard purchase, so the premium is $0 and the total mortgage is the loan itself. The tiers at 20% down and below are shown in the schedule for completeness; this tool charges no premium at 20% down or more.
The monthly payment. The monthly payment is worked out on the total mortgage, which is the loan plus the premium, with the standard amortization formula: the total times the monthly rate, divided by one minus one plus the monthly rate to the power of minus the number of monthly payments. Total interest is the monthly payment times the number of payments, minus the total mortgage.
Worked examples. A $650,000 home with $65,000 down, a 4.50% rate, and a 25-year amortization: the minimum down payment is $40,000, so $65,000 is enough. The loan is $585,000, which is 90% of the price, so the premium rate is 3.10% and the premium is $18,135. The total mortgage is $603,135 and the monthly payment is $3,352.42. A $500,000 home with $25,000 down, a 5.00% rate, and a 25-year amortization: the minimum down payment is $25,000. The loan is $475,000, which is 95% of the price, so the premium rate is 4.00% and the premium is $19,000. The total mortgage is $494,000 and the monthly payment is $2,887.87.
What this estimator leaves out. The three insurers: the Canada Mortgage and Housing Corporation, Sagen, and Canada Guaranty. Their premium schedules are practically identical and your lender chooses the insurer, but the exact premium is the one on your lender's commitment. Provincial sales tax on the premium, which Ontario, Quebec, and Saskatchewan charge and which is paid in cash at closing and cannot be added to the loan. Land transfer tax, legal fees, and every other closing cost. The stress test. Any CMHC Eco Products partial premium refund for an energy-efficient home. Any lender fee or rate hold.
Sources: Canada Mortgage and Housing Corporation, CMHC Second Home (the premium schedule for homeowner loans, the minimum equity of 5% of the first $500,000 and 10% of the remainder, the maximum purchase price below $1,500,000, the 25-year maximum amortization with 30 years through CMHC Home Start, and the premium as a one-time charge that may be added to the insured loan amount), opened at build time on November 9, 2026. The interest rate on this page is your input, not a published rate. No figure on this page comes from anywhere else.