Cmhc Premium Comparison
CMHC Insurance Premium: 5% vs 10% vs 15% Down Payment, How Much Will You Pay?
Meta Description: Compare CMHC insurance costs for 5%, 10%, and 15% down payments in Canada 2026. Use our CMHC premium calculator to see how much you'll pay.
When you're buying your first home in Canada with less than a 20% down payment, CMHC insurance isn't optional, it's mandatory. But here's the thing: the size of your down payment dramatically affects how much you'll pay in mortgage insurance premiums.
If you're wondering whether scraping together an extra 5% or 10% for your down payment is worth it, this guide will show you exactly how much you can save (or pay) depending on your choice.
Let's break down the real costs of CMHC insurance at different down payment levels and help you make a smarter decision for your financial future.
What is CMHC Insurance and Why Do You Need It?
The Canada Mortgage and Housing Corporation (CMHC) provides mortgage default insurance that protects lenders when homebuyers put down less than 20% of the purchase price. While it protects the lender, you pay the premium, either as a lump sum added to your mortgage or upfront at closing.
The good news? The more you put down, the less you pay in insurance premiums. The bad news? Even small differences in down payment percentages can mean thousands of dollars in extra costs.
Current CMHC Premium Rates for 2024-2026
As of 2024, CMHC premium rates are structured based on your loan-to-value (LTV) ratio, essentially, how much you're borrowing compared to the home's value. Here are the current rates that apply through 2026:
- 5-9.99% down payment (90.01-95% LTV): 4.00% of the mortgage amount
- 10-14.99% down payment (85.01-90% LTV): 3.10% of the mortgage amount
- 15-19.99% down payment (80.01-85% LTV): 2.80% of the mortgage amount
Notice the pattern? The larger your down payment, the lower your insurance premium percentage. But let's see what this means in actual dollars.
CMHC Premium Comparison: Real Numbers for Real Homes
Here's where it gets practical. Let's compare what you'd pay in CMHC insurance premiums for homes at different price points with different down payment amounts.
CMHC Premium Comparison Table
| Home Price | Down Payment | Mortgage Amount | CMHC Premium (Rate) | Total CMHC Cost | Monthly Impact* |
|---|---|---|---|---|---|
| $400,000 | 5% ($20,000) | $380,000 | 4.00% | $15,200 | +$61/month |
| 10% ($40,000) | $360,000 | 3.10% | $11,160 | +$45/month | |
| 15% ($60,000) | $340,000 | 2.80% | $9,520 | +$38/month | |
| $600,000 | 5% ($30,000) | $570,000 | 4.00% | $22,800 | +$91/month |
| 10% ($60,000) | $540,000 | 3.10% | $16,740 | +$67/month | |
| 15% ($90,000) | $510,000 | 2.80% | $14,280 | +$57/month | |
| $800,000 | 5% ($40,000) | $760,000 | 4.00% | $30,400 | +$122/month |
| 10% ($80,000) | $720,000 | 3.10% | $22,320 | +$89/month | |
| 15% ($120,000) | $680,000 | 2.80% | $19,040 | +$76/month |
*Monthly impact based on 25-year amortization at 5% interest rate (approximate)
The Real Cost Difference: 5% vs 10% vs 15% Down
Let's look at a typical scenario: you're buying a $600,000 home (around the average home price in many Canadian cities).
Going from 5% to 10% down:
- You save $6,060 in CMHC premiums ($22,800 - $16,740)
- But you need an extra $30,000 for your down payment
- The premium savings equal about 20% of the additional down payment
Going from 10% to 15% down:
- You save $2,460 in CMHC premiums ($16,740 - $14,280)
- But you need an extra $30,000 for your down payment
- The premium savings equal about 8% of the additional down payment
Going from 5% to 15% down:
- You save $8,520 in CMHC premiums ($22,800 - $14,280)
- But you need an extra $60,000 for your down payment
- The premium savings equal about 14% of the additional down payment
Should You Put Down More to Save on CMHC Insurance?
Here's where personal finance meets personal circumstance. Saving thousands on CMHC insurance sounds great, but it's not always the smartest move. Consider these factors:
When a 5% Down Payment Makes Sense:
- You want to enter the market sooner while rates are favorable
- You have strong cash flow but limited savings
- You'd rather keep reserves for renovations, emergencies, or investments
- Home prices are rising quickly in your market
When 10-15% Down Is Worth It:
- You have the savings available without depleting your emergency fund
- You want lower monthly payments overall
- You're on the cusp of a premium rate threshold (e.g., at 9.5% down, pushing to 10% saves significantly)
- You want to reduce your total borrowing costs over the life of the mortgage
Pro tip: If you're at 9% down, it's absolutely worth stretching to hit 10%. That 1% extra drops your CMHC premium rate from 4.00% to 3.10%, a significant jump. Similarly, if you're at 14% down, pushing to 15% can be worthwhile.
How to Calculate Your Exact CMHC Insurance Cost
While the table above gives you a solid estimate, every situation is unique. Factors like property type (single-family vs. condo), self-employment status, and amortization period can affect your actual premium.
Want an exact number? Use our CMHC premium calculator at SmartMortgageInsurance.com to get a personalized quote in seconds. Just enter your home price, down payment, and a few basic details, our tool does the math instantly.
Beyond CMHC: Other Mortgage Insurance Options in Canada
CMHC isn't your only option for mortgage default insurance in Canada. Two other providers offer similar coverage:
-
Sagen (formerly Genworth Canada): Offers competitive rates similar to CMHC, often with identical premium structures. Some lenders prefer Sagen for certain file types.
-
Canada Guaranty: Another major player in the mortgage insurance space, with rates comparable to CMHC and Sagen.
The premium rates are typically the same across all three providers for standard applications, but your lender will often choose which insurer to use based on their relationships and underwriting preferences. The good news? You generally don't need to worry about shopping between them, your mortgage broker or lender will handle that.
The Bottom Line: Smart Strategies for CMHC Insurance
Here's what you need to remember about CMHC insurance premiums:
- Bigger down payments = lower premiums, but not always by enough to justify draining your savings
- The 10% and 15% thresholds are sweet spots where premium rates drop significantly
- CMHC premiums are added to your mortgage, so you'll pay interest on them over 25+ years
- Compare the savings against what you could earn by investing that extra down payment money elsewhere
- Every situation is different, run the numbers for your specific scenario
Ready to Calculate Your CMHC Premium?
Don't guess what you'll pay in mortgage insurance. Get an accurate quote in seconds with our free CMHC Premium Calculator.
Whether you're planning to buy with 5% down or you're trying to decide if scraping together 15% is worth it, our calculator will show you:
- Your exact CMHC insurance premium
- How it affects your monthly payment
- What you'll pay over the life of your mortgage
- How different down payment amounts change your costs
Calculate Your CMHC Premium Now →
Disclaimer: Premium rates and calculations are based on standard CMHC guidelines as of 2024. Actual premiums may vary based on property type, location, and individual circumstances. Always consult with a licensed mortgage professional for advice specific to your situation.