On a $650,000 home with 10% down, CMHC insurance costs $18,135. That’s 3.10% of the $585,000 loan, and because it’s rolled into the mortgage, you pay interest on it for the whole term. Punch in your own price and deposit below.
When is the insurance required?
Lenders demand mortgage default insurance once your down payment is under a fifth of the price. The cover protects the lender, yet the bill is yours. It does let a buyer with a small deposit get a mortgage at all. Homes priced at $1,500,000 or more can’t be insured, so those buyers bring a fifth of the price in cash.
The Financial Consumer Agency of Canada’s down payment page puts it the same way: with less than 20% down, you’ll typically need mortgage loan insurance.
What are the premium rates?
A bigger loan against the price means a higher rate.
| Down payment | Loan-to-value | Premium on the loan |
|---|---|---|
| 5% to 9.99% | 90.01% to 95% | 4.00% |
| 10% to 14.99% | 85.01% to 90% | 3.10% |
| 15% to 19.99% | 80.01% to 85% | 2.80% |
| 20% or more | 80% or less | No premium on a purchase |
The percentage applies to the loan, not to the price. On a $500,000 home with 5% down, the loan is $475,000, so the 4.00% premium comes to $19,000.
What does a bigger deposit save?
Take a $650,000 price and a $65,000 deposit. The loan before the premium is $585,000, the loan-to-value is 90.0%, and that lands in the 3.10% band. The premium is $18,135 and the final loan is $603,135.
Put down 15% instead, $97,500. Loan-to-value drops to 85% and the rate to 2.80%, so the premium is $15,470 and the total loan is $567,970. The extra $32,500 of deposit saves you $2,665 in premium and cuts the loan by more than $35,000.
One oddity: the calculator’s table lists 5% down as below the minimum for this price. The minimum on $650,000 is $40,000, or 6.2%, so a 5% deposit of $32,500 doesn’t clear it.
What does the premium do to your monthly payment?
It adds interest, and it adds it quietly. At 4.85% over 25 years, a $585,000 loan costs about $3,353 a month, while the $603,135 loan with the premium folded in costs $3,456.54. That’s roughly $104 a month for a premium you never wrote a cheque for. It feels like a few bucks, but over 25 years it adds up to far more than $18,135.
Is any of it paid in cash?
The premium is financed. The tax on it may not be.
Ontario, Quebec and Saskatchewan tax the premium as an insurance purchase, and that tax can’t go into the mortgage. It joins your other closing costs. On the example above the calculator shows $1,450.80 in Ontario. Pick your province to see whether it applies, and budget for it with the closing costs calculator.
Common mistakes and what the tool leaves out
People often treat the premium as an up-front fee. It’s folded into the loan, which lifts your payment, and the mortgage payment calculator shows that payment with the premium included. A longer amortization can raise the premium, and the calculator applies a surcharge above 25 years. We haven’t confirmed the size of that surcharge against official pages, so check it with your lender. First-timers and new-build buyers are the only ones who can get an insured 30-year term.
The tool doesn’t model the higher premium for a non-traditional down payment. Not sure how much to put down? Start with the down payment calculator. For the price your income can carry, use the mortgage affordability calculator.
How we checked the figures
Premium bands come from CMHC‘s published premium table, and the down payment rules from the Financial Consumer Agency of Canada. Ask your lender to confirm the exact premium before you commit, since it shows up on your mortgage documents. This website has no connection with CMHC or any government body.
About this calculator
- What it does
- Estimate the CMHC premium, the sales tax due at closing and your total loan.
- Category
- Mortgage
- Last checked
- September 30, 2026
- Result type
- Estimate for information only, not tax advice.
Frequently asked questions
What does CMHC insurance cost on a $650,000 home?
With 10% down it's $18,135, which is 3.10% of the $585,000 loan. Your total loan becomes $603,135.
What are the premium rates?
4.00% of the loan at 5% down, 3.10% at 10% down and 2.80% at 15% down.
Do I pay the premium on closing day?
No, it's added to the mortgage. Only the sales tax on it, charged in Ontario, Quebec and Saskatchewan, is paid in cash at closing.
Is there a way around the premium?
Yes, put down 20% or more. On a $650,000 home that's $130,000.
Can a $1,600,000 home be insured?
No. Homes at $1,500,000 or more can't be insured, so you need a deposit of at least 20%.
Sources and updates
Updated: . How we check rates · Editorial team · Updates