Cmhc Insurance Calculator Ontario

Use this CMHC insurance calculator to estimate the monthly premium for mortgage insurance in Ontario. CMHC insurance is required for down payments under 20% of the property value in Ontario. This calculator helps you understand the cost of CMHC insurance based on your mortgage amount and property value.

How to Calculate CMHC Insurance in Ontario

CMHC insurance is a government-backed mortgage insurance program in Ontario. It protects lenders when you make a down payment of less than 20% on a home purchase. The premium is calculated based on the mortgage amount and the property value.

Key Factors Affecting CMHC Insurance

Mortgage amount (loan amount)
Property value (purchase price)
Down payment percentage
CMHC insurance rates (varies by property type)

CMHC insurance is mandatory for down payments under 20% in Ontario. The premium is typically paid monthly and is removed once your equity reaches 40% of the property value.

When is CMHC Insurance Required?

You need CMHC insurance if:

You're purchasing a home in Ontario
Your down payment is less than 20% of the property value
You're not using a gift or inheritance for your down payment

CMHC Insurance Formula

The CMHC insurance premium is calculated using the following formula:

CMHC Premium = (Mortgage Amount × Rate) / 12

Where:

Mortgage Amount = Purchase Price - Down Payment
Rate = CMHC insurance rate (varies by property type)
12 = Number of months in a year

The CMHC insurance rate depends on the property type:

Property Type	CMHC Rate
Single-family home	3.50%
Semi-detached home	3.50%
Row house	3.50%
Duplex	3.50%
Triplex	3.50%
Fourplex	3.50%
Other residential	3.50%

Note: As of 2023, the standard CMHC insurance rate for all residential properties in Ontario is 3.50%. This rate may change, so always verify with the latest CMHC guidelines.

Worked Example

Let's calculate the CMHC insurance premium for a $400,000 home with a $40,000 down payment (10% down).

Step 1: Calculate Mortgage Amount

Mortgage Amount = Purchase Price - Down Payment

Mortgage Amount = $400,000 - $40,000 = $360,000

Step 2: Apply CMHC Rate

CMHC Rate = 3.50%

Annual Premium = $360,000 × 3.50% = $12,600

Step 3: Calculate Monthly Premium

Monthly Premium = Annual Premium / 12

Monthly Premium = $12,600 / 12 = $1,050

In this example, the monthly CMHC insurance premium would be $1,050.

Frequently Asked Questions

What is CMHC insurance?: CMHC insurance is a government-backed mortgage insurance program in Ontario that protects lenders when you make a down payment of less than 20% on a home purchase.
How much is CMHC insurance?: The CMHC insurance premium is calculated based on your mortgage amount and the property value. The standard rate is 3.50% of the mortgage amount, paid monthly.
When is CMHC insurance required?: CMHC insurance is required for down payments under 20% in Ontario, unless you're using a gift or inheritance for your down payment.
How long do I have to pay CMHC insurance?: You must pay CMHC insurance until your equity reaches 40% of the property value, at which point the insurance is removed.
Can I cancel CMHC insurance early?: You can cancel CMHC insurance early if you refinance your mortgage and meet the equity requirements, or if you sell the property.