What is CMHC mortgage default insurance?

When your down payment is below 20%, federal rules require the lender to insure the mortgage against default. The premium (2.80–4.00% of the loan, depending on LTV) is added to your loan and amortized over the same term.

What's the minimum down payment in Canada?

5% on the first $500,000 of purchase price, plus 10% on the portion above $500,000 up to $1,500,000. Above $1.5M, you need a conventional 20% down — insured mortgages aren't available.

Can I avoid CMHC by putting 20% down?

Yes. At 20% or more down, the loan is conventional and no insurance premium applies. You also get access to longer amortizations (up to 30 years with most lenders), which lowers the monthly payment further.

What is loan-to-value (LTV)?

LTV is your loan amount divided by the property value, expressed as a percentage. 95% LTV = 5% down. CMHC premium tiers, lender risk pricing, and refinance limits all key off LTV.

What amortization should I pick?

25 years is the standard for insured mortgages. Conventional borrowers can stretch to 30 years for a lower monthly payment but pay considerably more total interest. First-time buyers of new builds have access to a 30-year insured option as of 2024.

Does the calculator include property tax and home insurance?

No — it shows the principal-and-interest mortgage payment plus the CMHC premium impact. Add municipal/school taxes and home insurance separately when budgeting your monthly carrying costs.

Why does my bank quote differ from this calculator?

Bank quotes can include life/disability insurance, payment frequency adjustments, or mid-term variable-rate assumptions. This calculator gives you the clean math: amortized P&I plus CMHC, semi-annual compounding.

Mortgage · Canada

Your monthly payment, with the CMHC math.

A Canadian mortgage payment calculator that uses the proper semi-annual compounding convention and adds CMHC default-insurance premium when your down payment is under 20%.

Assumptions

Home price

Down payment

Mortgage rate

Amortization (years)

Results

Monthly payment

$2,622/mo

Loan amount$440,000

Loan-to-value80.0%

Minimum down payment$30,000

Interest over amortization$346,612

Mortgages use the Canadian semi-annual compounding convention.

Foncier the whole deal

This number is one of seventy.

Cap rate is a start. The full Foncier analyzer adds DSCR, IRR, ten-year cashflow projections, scenarios, side-by-side compare, and live community rent comps — for free, on your first three deals.

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How this is calculated

Canadian fixed-rate mortgages compound semi-annually, so the effective monthly rate is (1 + rate/2)^(1/6) - 1, not rate/12. CMHC premium tiers shown are the standard 2.80% / 3.10% / 4.00% for 80–85% / 85–90% / 90–95% loan-to-value, applied as a one-time premium added to the loan.

Worked examples

How CMHC and rate change a Canadian mortgage payment.

$550k home · 5% down · CMHC

$3,448 / month

A $550,000 home with the minimum down payment ($30,000). Loan-to-value sits at 94.5%, triggering a 4.0% CMHC premium added to the loan. At 5.25% over 25 years, the monthly payment lands at $3,448.

Down$30,000 (5.5%)

CMHC$20,800

Insured loan$540,800

LTV98.4%

$550k home · 20% down · no CMHC

$2,617 / month

Same $550,000 home with a 20% down payment ($110,000). No CMHC premium, conventional financing. At 5.25% over 25 years, the monthly drops to $2,617 — about $830/month less than the insured scenario.

Down$110,000

CMHC$0

Loan$440,000

LTV80.0%

Mortgage questions

About Canadian mortgage payment math.

Canadian fixed-rate mortgages compound semi-annually, not monthly. So your effective monthly rate is (1 + rate/2)^(1/6) − 1, which is slightly lower than rate/12. A US calculator will overstate your Canadian payment by a few dollars a month.

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