CMHC Mortgage Insurance Guide – What Ontario Homebuyers Need to Know

When buying a home with a down payment of less than 20%, mortgage default insurance is required in Canada. The Canada Mortgage and Housing Corporation (CMHC) is one of the primary insurers. At InBudget Mortgage, we help Ontario buyers understand and navigate CMHC-insured mortgages.

What Is CMHC Mortgage Insurance?

CMHC insurance protects lenders in case a borrower defaults. It allows buyers to purchase homes with as little as 5% down while still accessing competitive mortgage rates.

Benefits:

• ✅ Buy with a lower down payment (as low as 5%)
• ✅ Access to better interest rates
• ✅ Spread homeownership accessibility across Canada

Who Needs CMHC Insurance?

If your down payment is under 20%, you’ll need mortgage insurance from CMHC or a similar provider (like Sagen or Canada Guaranty).

How Much Does CMHC Insurance Cost?

The premium is based on a percentage of your mortgage amount and ranges from 2.8% to 4.0%, depending on your down payment size. It is typically added to your mortgage principal.

CMHC Insurance Requirements

• Minimum down payment: 5%
• Property must be under $1,000,000
• Amortization max: 25 years
• Debt service ratios must fall within allowed limits

Learn more directly from the

official CMHC website
.

Get Pre-Approved with InBudget

We help you get pre-approved and walk you through the CMHC-insured mortgage process step-by-step.

Apply Now with InBudget

Need guidance? Contact our mortgage experts or apply online now.