Financing · CMHC insurance · 2026
Under 20% down, the CMHC premium adds up to 4% to the loan and a 9% tax to pay in cash. Here is the 2026 schedule, the $1.5 million cap, the 30-year rule and the math on $500,000.
Any mortgage with less than 20% down must be insured by CMHC, Sagen or Canada Guaranty, at the borrower's expense: the premium is 4.00% of the loan with a 5% to 9.99% down payment, 3.10% with 10% to 14.99% and 2.80% with 15% to 19.99%, plus 0.20% for a 30-year amortization (allowed for first-time buyers and new builds since December 2024). The premium is added to the loan and amortized with it; only the 9% Quebec tax on the premium is paid in cash at the notary. The purchase price must be under $1,500,000 (cap raised on December 15, 2024), the property owner-occupied, and the down payment 5% up to $500,000 then 10% on the excess. On a $500,000 house with 5% down ($25,000), the loan is $475,000, the premium $19,000 (4%), the insured loan $494,000, the tax $1,710 at the notary, and the monthly payment at 4.24% over 25 years about $2,663. The insurance protects the lender, not you: on default, the insurer pays the bank and can claim the shortfall from you.
| Down payment | Premium (25 years) | Premium (30 years, first-time buyer or new build) | On a $475,000 loan |
|---|---|---|---|
| 5% to 9.99% | 4.00% | 4.20% | $19,000 (25 years), $19,950 (30 years) |
| 10% to 14.99% | 3.10% | 3.30% | On $450,000: $13,950 |
| 15% to 19.99% | 2.80% | 3.00% | On $425,000: $11,900 |
| 20% and more | No premium (conventional loan) | $0 |
The premium is calculated on the loan amount, added to principal and repaid with the monthly payments; the 9% Quebec sales tax on the premium (for example $1,710 on a $19,000 premium) is paid in cash on signing day. The three insurers (CMHC, Sagen, Canada Guaranty) use the same schedule; the lender picks the insurer.
Purchase price under $1,500,000 (cap raised from $1 million on December 15, 2024); minimum down payment of 5% on the first $500,000 and 10% on the portion between $500,000 and $1,500,000 ($75,000 on $1,000,000); property occupied by the buyer or a relative (non-occupied rental buildings require 20%); maximum amortization of 25 years, or 30 years for first-time buyers and any new build since December 15, 2024, with the 0.20% surcharge; stress test at the contract rate plus 2% (or 5.25%, whichever is higher), gross and total debt service ratios under 39% and 44%; down payment from savings, the FHSA, the HBP, a gift from a relative or, under conditions, borrowed. An insured loan can be switched to another lender at renewal without a new stress test, a real advantage in 2026.
It does not protect you: it guarantees the lender against your default, and the insurer that paid the bank can sue you for the shortfall. It is not refundable if you sell or refinance, except by porting the premium to a new insured purchase within the insurer's window. It does not replace mortgage life or disability insurance, an optional product sold by lenders and insurers. It is not due at renewal.
Price $500,000, 5% down = $25,000, loan $475,000, 4% premium = $19,000, insured loan $494,000, 9% tax $1,710 at the notary; monthly payment at 4.24% fixed over 25 years about $2,663, over 30 years (4.2% premium) about $2,417; approximate gross income required $109,000 with the stress test at 6.24%. With 10% down ($50,000), the premium falls to $13,950 and the 25-year payment to about $2,501. The mortgage calculator redoes the math for your price; our first-time buyer pages add the FHSA, the HBP and the welcome tax.
4.00% of the loan with 5% down, 3.10% with 10%, 2.80% with 15%, plus 0.20% for a 30-year amortization; the premium is added to the loan and the 9% Quebec tax is paid at the notary.
Under $1,500,000 since December 15, 2024, with 5% on the first $500,000 and 10% on the excess.
No, it protects the lender; the insurer can claim the loss from the borrower after a repossession.
With 20% down, or by waiting until value and repayments bring equity to 20% to refinance without insurance.
To run your own numbers: the commission calculator, our fees and the mortgage calculator. French versions are linked below.
The Loaa & Manseur team, led by Lotfi Manseur and Loaa Al Daow, is the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 of large residential teams according to the official RE/MAX ranking, computed on actual transactions. Its Google profile counts 221 reviews with a 4.9 rating. Its offices are at 55 avenue de l'Équinoxe in Brossard, one bridge from the island, and every broker's licence can be checked in the OACIQ public register. Three things to verify yourself before calling us, and to demand of any other broker.
Also available in French: version française de ce guide.
Published September 7, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.
Équipe no 1 de RE/MAX Platine en 2024 et en 2025, 6e au Québec, 15e au Canada et dans le top 50 mondial au classement officiel RE/MAX. Réponse en moins de 24 heures, sept jours sur sept.