CMHC Insurance CalculatorBritish Columbia (2026)
Calculate your CMHC mortgage default insurance premium instantly. This calculator uses the official premium rates effective December 15, 2024, including the new $1.5 million insurable limit and 30-year amortization for first-time buyers. BC buyers pay no PST on CMHC premiums.
Updated for 2026 · Includes December 2024 rule changes
Purchase Price
Down Payment
That's 5.0% of the purchase price
Below minimum: The minimum down payment for a $800,000 home is $55,000 (6.9%).
Down Payment Source
Buyer Details
British Columbia
No PST on CMHC premiums in BC — you save compared to Ontario (8% PST) and Quebec (9% QST)
CMHC Insurance Premium
$0
Not eligible for CMHC insurance
Loan-to-Value Ratio
95.0%
Insurance required — highest premium tier
Breakdown
With 20% Down You Would Save
$664.17 /month
No insurance premium + lower mortgage balance with $160,000 down
This calculator provides estimates for educational purposes only. CMHC premiums shown reflect rates effective December 15, 2024 and apply equally to CMHC, Sagen, and Canada Guaranty. Actual mortgage approval depends on lender requirements, credit history, and property eligibility. For a personalized quote, contact me for a free consultation.
What is CMHC Mortgage Insurance?
CMHC mortgage insurance — officially called mortgage default insurance — is a mandatory requirement for Canadian home buyers who make a down payment of less than 20% of the purchase price. It protects your lender (not you) against losses if you default on your mortgage.
The insurance is provided by one of three approved insurers: the Canada Mortgage and Housing Corporation (CMHC), Sagen (formerly Genworth Financial), or Canada Guaranty. All three charge the same premium rates, so the cost is identical regardless of which insurer your lender uses.
The premium is calculated as a percentage of your mortgage amount, based on your loan-to-value (LTV) ratio. It is added to your mortgage balance, so you pay it off over the life of the loan as part of your regular monthly payments.
Key Facts:
How CMHC Premiums Are Calculated
The CMHC premium is based on your loan-to-value (LTV) ratio, which is your mortgage amount divided by the purchase price. A higher LTV means a higher premium rate because the lender's risk is greater.
The formula is straightforward:
CMHC Premium = Mortgage Amount × Premium Rate
Total Mortgage = Mortgage Amount + CMHC Premium
For example, on an $800,000 home with 5% down ($40,000):
Example: $800,000 Home with 5% Down
CMHC Premium Rate Tables (2024)
Below are the official CMHC premium rates effective December 15, 2024. These rates apply equally to CMHC, Sagen, and Canada Guaranty. I've included all three tables so you can compare standard rates, 30-year amortization rates, and non-traditional source rates.
Standard Premium Rates (25-Year Amortization)
| LTV Range | Down Payment | Premium Rate |
|---|---|---|
| Up to 65% | 35%+ | 0.60% |
| 65.01% – 75% | 25% – 34.99% | 1.70% |
| 75.01% – 80% | 20% – 24.99% | 2.40% |
| 80.01% – 85% | 15% – 19.99% | 2.80% |
| 85.01% – 90% | 10% – 14.99% | 3.10% |
| 90.01% – 95% | 5% – 9.99% | 4.00% |
30-Year Amortization Rates (First-Time Buyers)
Standard rate + 0.20% surcharge. Available to first-time buyers only.
| LTV Range | Standard Rate | 30-Year Rate |
|---|---|---|
| Up to 65% | 0.60% | 0.80% |
| 65.01% – 75% | 1.70% | 1.90% |
| 75.01% – 80% | 2.40% | 2.60% |
| 80.01% – 85% | 2.80% | 3.00% |
| 85.01% – 90% | 3.10% | 3.30% |
| 90.01% – 95% | 4.00% | 4.20% |
Non-Traditional Down Payment Source Rates
Higher rates apply when the down payment comes from borrowed funds or lender cashback programs.
| LTV Range | Standard Rate | Non-Traditional Rate |
|---|---|---|
| Up to 65% | 0.60% | 1.15% |
| 65.01% – 75% | 1.70% | 2.65% |
| 75.01% – 80% | 2.40% | 2.95% |
| 80.01% – 85% | 2.80% | 3.30% |
| 85.01% – 90% | 3.10% | 3.55% |
| 90.01% – 95% | 4.00% | 4.50% |
Minimum Down Payment Rules in Canada
Canada uses a tiered minimum down payment system. The rules changed significantly on December 15, 2024 when the maximum insurable purchase price increased from $1 million to $1.5 million.
| Purchase Price | Minimum Down Payment |
|---|---|
| First $500,000 | 5% ($25,000) |
| $500,001 – $1,500,000 | 10% on the portion above $500K |
| Above $1,500,000 | 20% of full purchase price |
$500,000 Home
$25,000 minimum
5% of price
$750,000 Home
$50,000 minimum
6.67% of price
$1,000,000 Home
$75,000 minimum
7.5% of price
$1,500,000 Home
$125,000 minimum
8.33% of price
2024 CMHC Rule Changes — What's New
Two major changes took effect in 2024 that significantly impact home buyers, especially in higher-priced markets like BC:
August 1, 2024
30-Year Amortization
First-time buyers purchasing new builds can now choose a 30-year insured amortization instead of the previous 25-year maximum. A 0.20% premium surcharge applies.
December 15, 2024
$1.5M Insurable Limit
The maximum insurable purchase price increased from $1 million to $1.5 million. 30-year amortization expanded to all first-time buyers, not just new builds.
These changes are significant for BC buyers. Before December 2024, a buyer purchasing an $1,200,000 home needed $240,000 down (20%). Now, they can buy with as little as $95,000 down (7.92%) by using CMHC insurance. That's $145,000 less you need to save before buying.
No PST on CMHC Premiums in BC
If you're buying in British Columbia, you catch a break that buyers in Ontario and Quebec don't get: BC does not charge Provincial Sales Tax on CMHC mortgage insurance premiums.
In Ontario, the 8% provincial portion of HST applies to insurance premiums. In Quebec, 9% QST applies. This tax is not added to the mortgage — it must be paid upfront at closing.
| Province | PST/QST Rate | Tax on $30,000 Premium |
|---|---|---|
| British Columbia | 0% | $0 |
| Alberta | 0% | $0 |
| Ontario | 8% | $2,400 |
| Quebec | 9% | $2,700 |
| Saskatchewan | 6% | $1,800 |
| Manitoba | 7% | $2,100 |
30-Year Amortization for First-Time Buyers
Starting December 15, 2024, all first-time home buyers can choose a 30-year insured amortization — previously, the maximum was 25 years for insured mortgages. This lowers your monthly payment but increases the total interest paid over the life of the loan.
Example: $760,000 Mortgage at 4.5%
25-Year Amortization
$4,192/mo
Premium rate: 4.00% ($30,400)
30-Year Amortization
$3,801/mo
Premium rate: 4.20% ($31,920)
The 30-year option saves approximately $391/month but costs more in total interest over the loan's life.
I generally recommend the 25-year amortization if you can afford the higher payment. However, the 30-year option can be a smart choice if you need the lower payment to qualify, or if you plan to make lump-sum prepayments that effectively shorten the amortization.
Acceptable Down Payment Sources
Where your down payment comes from affects your CMHC premium rate. Traditional sources get standard rates, while non-traditional sources trigger higher premiums.
Traditional Sources (Standard Rates)
Non-Traditional Sources (Higher Rates)
Using Your RRSP or FHSA for a Down Payment
Two government programs let you use tax-sheltered savings for a down payment without triggering a tax bill. I recommend maximizing both if you're planning a first home purchase.
RRSP Home Buyers' Plan (HBP)
First Home Savings Account (FHSA)
Using both programs together, a couple could potentially access up to $200,000 in tax-advantaged down payment funds ($120,000 from RRSP HBP + $80,000 from FHSAs). Both are treated as traditional sources for CMHC premium calculations.
How to Avoid Paying CMHC Insurance
The only way to avoid CMHC mortgage insurance is to make a down payment of 20% or more. Here are strategies I recommend to my clients to help reach that threshold:
Maximize your RRSP and FHSA
A couple can accumulate up to $200,000 in tax-advantaged down payment funds using both the HBP and FHSA programs.
Ask family for a gifted down payment
Gifts from immediate family members are an accepted traditional source. Get a signed gift letter confirming the funds are not a loan.
Consider a less expensive property
A townhouse or condo may let you reach 20% down. For example, 20% of $600,000 is $120,000 versus $160,000 on an $800,000 home.
Buy with a co-borrower
Pooling down payment funds with a spouse or partner can help reach the 20% threshold faster.
Wait and save more
If you are close to 20%, it may be worth waiting. A $30,000+ CMHC premium is a significant cost that can be avoided with patience.
That said, don't let CMHC insurance stop you from buying. In a rising market, waiting to save 20% can cost more than the premium if home prices increase faster than you can save. I help my clients weigh both options based on their specific situation.
CMHC vs. Sagen vs. Canada Guaranty
All three mortgage default insurance providers in Canada offer the same premium rates. Your lender decides which insurer to use, and as a borrower, you typically have no say in the matter. Here is how they compare:
| Feature | CMHC | Sagen | Canada Guaranty |
|---|---|---|---|
| Ownership | Government | Private | Private |
| Premium Rates | Same | Same | Same |
| Max Purchase Price | $1.5M | $1.5M | $1.5M |
| Max Amortization | 30 yr* | 30 yr* | 30 yr* |
| Portability | Yes | Yes | Yes |
* 30-year amortization available for first-time buyers only
The bottom line: it does not matter which insurer your lender uses. The cost to you is exactly the same. I use “CMHC insurance” throughout this page as a generic term, but everything applies equally to all three providers.
CMHC Insurance for BC Home Buyers
If you're buying a home in British Columbia, CMHC insurance works in your favour compared to most other provinces. Here is what makes BC different:
No PST on premiums
BC does not tax insurance premiums provincially. Ontario buyers pay 8% PST on top of the CMHC premium, and Quebec buyers pay 9% QST — both payable upfront at closing.
Higher price cap benefits BC most
The December 2024 increase to $1.5M is especially relevant in Metro Vancouver and Fraser Valley, where average home prices frequently exceed $1 million.
First-time buyer programs stack
BC's First Time Home Buyers' Program (PTT exemption up to $835,000) combines with federal CMHC insurance. You can use both to reduce upfront costs.
Property Transfer Tax is separate
CMHC insurance does not affect your BC Property Transfer Tax. Use my PTT calculator to estimate that cost separately.
I work with buyers across Surrey, South Surrey, Langley, and the Fraser Valley every day. If you have questions about CMHC insurance for your specific situation, I offer free consultations — no obligation.
Need Help Understanding Your CMHC Costs?
I'll walk you through the numbers, explain your options, and help you decide whether buying now with CMHC insurance makes sense for your situation.
Book a Free ConsultationFrequently Asked Questions
What is CMHC mortgage insurance?
CMHC mortgage insurance (also called mortgage default insurance) protects your lender — not you — if you stop making mortgage payments. It is required when your down payment is less than 20% of the purchase price. The premium is calculated as a percentage of your mortgage amount and is added to your loan balance.
How much does CMHC insurance cost?
CMHC insurance premiums range from 0.60% to 4.00% of your mortgage amount, depending on your loan-to-value ratio. For example, with 5% down on an $800,000 home, the premium is 4.00% × $760,000 = $30,400. With 10% down, it drops to 3.10% × $720,000 = $22,320.
Who pays for CMHC insurance — the buyer or the lender?
The buyer pays the CMHC insurance premium. The premium is added to your mortgage balance, so you pay it off over the life of the loan as part of your regular mortgage payments. You do not need to pay it upfront as a lump sum.
Do I pay PST on CMHC insurance in BC?
No. British Columbia does not charge PST on CMHC insurance premiums. This saves you money compared to Ontario (8% PST) and Quebec (9% QST). For a $30,000 premium, you save $2,400 compared to buying in Ontario.
What is the maximum purchase price for CMHC insurance?
As of December 15, 2024, the maximum insurable purchase price is $1,500,000, increased from the previous $1,000,000 limit. Homes priced above $1.5 million require a minimum 20% down payment and cannot be insured through CMHC.
What is the minimum down payment in Canada?
The minimum down payment is 5% on the first $500,000 and 10% on any portion between $500,000 and $1,500,000. For homes over $1.5 million, 20% is required. For example, on a $750,000 home: (5% × $500,000) + (10% × $250,000) = $50,000.
Can I get a 30-year amortization with CMHC insurance?
Yes, as of August 1, 2024, first-time home buyers purchasing a new build can choose a 30-year insured amortization. A 0.20% surcharge applies to the standard premium rate. As of December 15, 2024, this has been expanded to all first-time buyers, not just new builds.
What is the difference between CMHC, Sagen, and Canada Guaranty?
All three are mortgage default insurance providers approved by the Canadian government. CMHC is the government-owned corporation, while Sagen (formerly Genworth) and Canada Guaranty are private companies. All use the same premium rate structure, so the cost is identical regardless of which insurer your lender uses.
Can I avoid CMHC insurance?
The only way to avoid CMHC insurance is to make a down payment of 20% or more. For an $800,000 home, that means $160,000 down. Some buyers use gifted funds, RRSP Home Buyers' Plan withdrawals, or FHSA savings to reach the 20% threshold.
Is CMHC insurance transferable if I move?
CMHC insurance can be ported (transferred) to a new property under certain conditions. You typically need to qualify for the new mortgage, and the new home must also meet CMHC's requirements. Contact your lender early to confirm portability.
How does CMHC insurance affect my monthly payment?
The CMHC premium is added to your mortgage balance, increasing the amount you finance. For example, a $30,400 premium on a 25-year mortgage at 4.5% adds approximately $168 per month to your payment.
What happens to CMHC insurance if I refinance?
If you refinance and your new loan-to-value ratio is above 80%, you will need new mortgage insurance at the current premium rates. If you refinance to 80% LTV or below, insurance is no longer required but you will not receive a refund of the original premium.
Does CMHC insurance cover me if I lose my job?
No. CMHC insurance protects the lender, not the borrower. If you lose your job and cannot make mortgage payments, CMHC pays the lender after foreclosure. For personal protection, consider mortgage disability insurance or an emergency fund covering 3 to 6 months of expenses.
What is a non-traditional down payment source?
A non-traditional down payment source includes borrowed funds (such as a personal loan or line of credit) and lender cashback programs. These result in higher CMHC premium rates — for example, 4.50% instead of 4.00% at 95% LTV. Traditional sources include personal savings, RRSP, FHSA, and gifts from immediate family.
Can I use my RRSP for a down payment?
Yes. The Home Buyers' Plan (HBP) allows first-time buyers to withdraw up to $60,000 per person from RRSPs tax-free for a home purchase. If buying with a partner, you can withdraw up to $120,000 combined. The amount must be repaid over 15 years.
What is the First Home Savings Account (FHSA)?
The FHSA allows Canadians to save up to $8,000 per year (lifetime max $40,000) for a first home purchase. Contributions are tax-deductible like an RRSP, and withdrawals for a qualifying home are tax-free. You can combine FHSA and RRSP HBP withdrawals.
How do 2024 CMHC rule changes affect me?
The December 15, 2024 changes increased the maximum insurable purchase price from $1M to $1.5M and expanded 30-year amortization to all first-time buyers. This means first-time buyers can now purchase higher-priced homes with as little as 5-10% down.
What is the loan-to-value (LTV) ratio?
The loan-to-value ratio is your mortgage amount divided by the purchase price. For example, if you put $40,000 down on an $800,000 home, your mortgage is $760,000 and your LTV is 95% ($760,000 ÷ $800,000). Higher LTV means higher CMHC premiums.
Do I need CMHC insurance for an investment property?
CMHC insurance is only available for owner-occupied properties — your principal residence. Investment properties and rental properties require a minimum 20% down payment and cannot be insured through CMHC, Sagen, or Canada Guaranty.
How accurate is this CMHC calculator?
This calculator uses the official CMHC premium rate tables effective December 15, 2024. Results match CMHC, Sagen, and Canada Guaranty rates as all three providers use the same rate structure. For a formal pre-approval and exact figures, contact me for a free consultation.
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