Cmhc Fees Calculator Ontario
'/%3E%3Ccircle cx='48' cy='39' r='19' fill='%23f2c9a5'/%3E%3Cpath d='M27 35c3-16 39-17 42 2-8-8-27-9-42-2z' fill='%23374151'/%3E%3Cpath d='M21 86c5-24 49-28 56 0z' fill='%232563eb'/%3E%3Ccircle cx='41' cy='41' r='2' fill='%23111827'/%3E%3Ccircle cx='55' cy='41' r='2' fill='%23111827'/%3E%3Cpath d='M42 52c4 3 9 3 13 0' stroke='%2392400e' stroke-width='3' fill='none' stroke-linecap='round'/%3E%3C/svg%3E)
Reviewed by Calculator Editorial Team
When buying a home in Ontario, you may need to pay CMHC fees to get mortgage insurance. This calculator helps you estimate your CMHC fees based on your mortgage amount and down payment.
What is CMHC?
The Canada Mortgage and Housing Corporation (CMHC) is a government agency that provides mortgage insurance to protect lenders against losses if a borrower defaults. CMHC insurance is required for most mortgages in Ontario when the down payment is less than 20% of the home's purchase price.
CMHC insurance premiums are calculated based on the mortgage amount and the down payment percentage. The fees are paid to CMHC and are separate from the mortgage interest rate.
How CMHC Fees Work
CMHC fees are calculated using a tiered system based on the mortgage amount and down payment percentage. Here's how it works:
- The mortgage amount is divided into three tiers: 0-50% of the home price, 50-80% of the home price, and 80-100% of the home price.
- Each tier has a different premium rate based on the down payment percentage.
- The total CMHC fee is the sum of the premiums for each tier.
CMHC Fee Formula
The CMHC fee is calculated as follows:
CMHC Fee = (Mortgage Amount × Premium Rate) + (Mortgage Amount × Additional Rate)
Where:
- Mortgage Amount = Home Price - Down Payment
- Premium Rate = Based on down payment percentage and mortgage tier
- Additional Rate = Based on down payment percentage and mortgage tier
For example, if you're buying a $400,000 home with a 10% down payment, your mortgage amount would be $360,000. The CMHC fee would be calculated based on the premium rates for the 0-50%, 50-80%, and 80-100% tiers.
How to Use This Calculator
To use the CMHC Fees Calculator:
- Enter the home price in the "Home Price" field.
- Enter your down payment percentage in the "Down Payment" field.
- Click the "Calculate" button to see your estimated CMHC fees.
- Review the result and the breakdown of the calculation.
The calculator will show you the total CMHC fee, the mortgage amount, and the down payment amount. It will also provide a breakdown of the calculation based on the mortgage tiers.
FAQ
- What is the difference between CMHC insurance and mortgage default insurance?
- CMHC insurance is a type of mortgage default insurance that protects lenders against losses if a borrower defaults. It is required for most mortgages in Ontario when the down payment is less than 20%. Mortgage default insurance is a broader term that includes CMHC insurance and other types of mortgage insurance.
- How long does CMHC insurance last?
- CMHC insurance typically lasts for the life of the mortgage, but it can be canceled if the borrower makes a lump-sum payment that brings their mortgage amount below the required threshold.
- Can I cancel CMHC insurance?
- Yes, you can cancel CMHC insurance if you make a lump-sum payment that brings your mortgage amount below the required threshold. However, you may need to pay a cancellation fee.
- Is CMHC insurance tax deductible?
- No, CMHC insurance premiums are not tax deductible. They are considered part of the cost of borrowing and are included in your mortgage calculations.
- What happens if I default on my mortgage with CMHC insurance?
- If you default on your mortgage with CMHC insurance, the lender will be responsible for covering the loss, up to the amount of the insurance premium paid. The CMHC will then work with the lender to recover the loss.