CMHCJune 15, 2026 · 4 min read
CMHC Mortgage Insurance Explained — Is It Really That Bad?
Required with less than 20% down. We explain premiums, how they work, and why CMHC mortgages sometimes get better rates.
What is CMHC Insurance?
CMHC (Canada Mortgage and Housing Corporation) mortgage default insurance is required when your down payment is less than 20% on a home purchase under $1.5M. It protects the lender — not you — if you default on your mortgage.
CMHC Premium Rates
| Down Payment | Premium Rate | On $500K Home |
|---|
| 5–9.99% | 4.00% | $19,000 |
| 10–14.99% | 3.10% | $13,950 |
| 15–19.99% | 2.80% | $11,900 |
| 20%+ | None ✅ | $0 |
Is CMHC Really That Bad?
Not necessarily. Here's why CMHC insurance isn't always the negative people assume:
- Lower interest rates: CMHC-insured mortgages often qualify for slightly better rates because lenders view them as lower risk
- Added to mortgage: The premium isn't paid upfront — it's added to your mortgage balance
- Enables homeownership sooner: Without CMHC, many Canadians would need to save for years longer
Alternatives to CMHC
Canada Guaranty and Sagen (formerly Genworth) also provide mortgage default insurance at identical rates. Your lender chooses which insurer to use — you don't.
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Go to Mortgage Tools →⚠️ This article is for informational purposes only. Not financial advice. Canada Mortgage Rates is not a licensed mortgage broker. Always verify with a licensed professional.
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