Mortgage Calculator with Cmhc Ontario

Calculate your mortgage payments including CMHC insurance premiums for Ontario properties. This calculator helps you estimate your monthly payments, total interest, and CMHC premiums based on your mortgage terms.

How to Use This Calculator

To use this mortgage calculator with CMHC Ontario:

Enter the purchase price of the property
Select your down payment percentage or enter a fixed amount
Choose your amortization period (typically 5, 10, 15, or 25 years)
Enter your interest rate (fixed or variable)
Select whether you want to include CMHC insurance
Click "Calculate" to see your monthly payment and other details

The calculator will show you your estimated monthly payment, total interest paid over the mortgage term, and CMHC premiums if applicable.

Formula Explained

The mortgage payment is calculated using the standard mortgage formula:

M = P [i(1 + i)^n] / [(1 + i)^n - 1]

Where:

M = Monthly payment
P = Principal loan amount (Purchase price - Down payment)
i = Monthly interest rate (Annual rate / 12 / 100)
n = Number of payments (Amortization period × 12)

For CMHC insurance, the premium is calculated based on the down payment percentage and the purchase price. The standard CMHC premium rates in Ontario are:

5% down payment: 3.8% of the purchase price
10% down payment: 3.2% of the purchase price
15% down payment: 2.8% of the purchase price
20% down payment: 2.4% of the purchase price
25% down payment: 2.0% of the purchase price
30% down payment: 1.5% of the purchase price

The total monthly payment includes both the mortgage payment and the CMHC premium divided by the number of payments.

Understanding CMHC Insurance

CMHC (Canada Mortgage and Housing Corporation) insurance provides lenders with protection against default on mortgages in Ontario. It's required when you put down less than 20% of the purchase price.

The CMHC premium is paid monthly and is based on your down payment percentage. The premium is calculated as a percentage of the purchase price and is added to your mortgage balance.

Note: CMHC insurance is not required for mortgages with 20% or more down payment. The premium is refundable if you sell the property within 90 days of purchase.

Worked Example

Let's calculate a mortgage for a $400,000 property with 10% down payment, 25-year amortization, and 5% interest rate, including CMHC insurance.

Down payment: 10% of $400,000 = $40,000
Loan amount: $400,000 - $40,000 = $360,000
Monthly interest rate: 5% / 12 = 0.4167%
Number of payments: 25 × 12 = 300
Monthly payment: $360,000 × [0.004167(1 + 0.004167)^300] / [(1 + 0.004167)^300 - 1] ≈ $2,120.45
CMHC premium: 3.2% of $400,000 = $12,800
Monthly CMHC premium: $12,800 / 300 ≈ $42.67
Total monthly payment: $2,120.45 + $42.67 ≈ $2,163.12

This example shows that including CMHC insurance increases your monthly payment by approximately $42.67.

Frequently Asked Questions

Is CMHC insurance required for all Ontario mortgages?

No, CMHC insurance is only required when you put down less than 20% of the purchase price. For 20% or more down payment, CMHC insurance is not required.

How is the CMHC premium calculated?

The CMHC premium is calculated as a percentage of the purchase price based on your down payment percentage. The rates range from 3.8% for 5% down payment to 1.5% for 30% down payment.

Is the CMHC premium refundable?

Yes, the CMHC premium is refundable if you sell the property within 90 days of purchase. After 90 days, the premium is added to your mortgage balance.

Can I get a mortgage with 100% financing in Ontario?

No, Ontario does not allow 100% financing for residential mortgages. You must put down at least 5% of the purchase price, which may require CMHC insurance depending on your down payment percentage.

How does CMHC insurance affect my mortgage approval?

CMHC insurance is a condition of your mortgage approval when you put down less than 20%. Lenders require it to protect against default, especially for higher-risk borrowers.