Cmhc Calculator Ontario

The CMHC Calculator Ontario helps you determine your mortgage insurance premiums and eligibility for properties in Ontario. This calculator uses official CMHC guidelines to provide accurate results based on your property value and down payment.

What is CMHC?

The Canada Mortgage and Housing Corporation (CMHC) is a government agency that provides mortgage insurance and housing-related services. CMHC insurance protects lenders if you default on your mortgage, allowing them to sell your home to recover their losses.

In Ontario, CMHC insurance is required for conventional mortgages when you put down less than 20% of the property's purchase price. The premium is calculated based on the property value and your down payment percentage.

How to Use This Calculator

To use the CMHC Calculator Ontario:

Enter the property value in Canadian dollars (CAD)
Select your down payment percentage
Click "Calculate" to see your CMHC premium

The calculator will show you the monthly premium amount and the total cost over the life of your mortgage.

Formula Used

The CMHC premium is calculated using the following formula:

CMHC Premium = (Property Value × Premium Rate) / 12

Where Premium Rate is determined by your down payment percentage:

5% down payment: 4.00%
10% down payment: 3.15%
15% down payment: 2.85%
20% down payment: 0.00%

This formula provides an estimate based on current CMHC guidelines. Actual premiums may vary based on additional factors not included in this calculator.

Worked Examples

Example 1: $400,000 Property with 10% Down Payment

Property Value: $400,000

Down Payment: 10% ($40,000)

Premium Rate: 3.15%

Monthly Premium: ($400,000 × 0.0315) / 12 = $105.00

Total Premium Over 25 Years: $105 × 300 = $31,500

Example 2: $600,000 Property with 15% Down Payment

Property Value: $600,000

Down Payment: 15% ($90,000)

Premium Rate: 2.85%

Monthly Premium: ($600,000 × 0.0285) / 12 = $142.50

Total Premium Over 25 Years: $142.50 × 300 = $42,750

Frequently Asked Questions

What is the difference between CMHC insurance and private mortgage insurance?

CMHC insurance is provided by the government through the Canada Mortgage and Housing Corporation, while private mortgage insurance is offered by private insurers. Both serve the same purpose of protecting lenders if you default on your mortgage.

Is CMHC insurance required for all mortgages in Ontario?

CMHC insurance is required for conventional mortgages when you put down less than 20% of the property's purchase price. It is not required for mortgages with a down payment of 20% or more.

How long do I have to pay CMHC premiums?

You typically pay CMHC premiums until your mortgage is fully paid off, which is usually 25 years for a conventional mortgage.

Can I cancel my CMHC insurance?

You can cancel your CMHC insurance if you refinance your mortgage and meet the new down payment requirements (usually 20% or more).

What happens if I default on my mortgage with CMHC insurance?

If you default on your mortgage, the CMHC insurance will cover the lender's losses up to the amount of your premiums paid. The lender can then sell your home to recover their investment.