Required with less than 20% down. We explain premiums, how they work, and why CMHC mortgages sometimes get better rates.
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.
| 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 |
Not necessarily. Here's why CMHC insurance isn't always the negative people assume:
Canada Guaranty and Sagen (formerly Genworth) also provide mortgage default insurance at identical rates. Your lender chooses which insurer to use — you don't.
Despite the name, CMHC mortgage default insurance protects the lender — not you. If you default, CMHC pays the lender and then comes after you for repayment. It allows lenders to offer mortgages with as little as 5% down, which keeps rates lower for all Canadians.
| Down Payment | Premium | On $500K |
|---|---|---|
| 5–9.99% | 4.00% | $19,000 |
| 10–14.99% | 3.10% | $13,950 |
| 15–19.99% | 2.80% | $11,900 |
| 20%+ | None | $0 |
Amrinder is a Winnipeg-based engineer and MBA who built canadamortgagerates.net to give Canadian homebuyers a single, unbiased platform covering every aspect of the home buying process — from mortgage rates and calculators to first-time buyer programs and professional connections.