CMHC vs Sagen vs Canada Guaranty
The three Canadian mortgage default insurers use identical premium tiers on conventional borrowers. Where they differ: niche programs (BFS, newcomer, second home, etc.). Compare here.
Your scenario
Result
ON, QC, and SK charge PST on the premium itself — payable at closing, not financed.
Mortgage default insurance in Canada — the basics
If your down payment is under 20% of the purchase price, federal regulations require mortgage default insurance (also called high-ratio insurance or CMHC insurance). It protects the lender if you default — but the cost is rolled into your mortgage and amortized over the life of the loan.
Three insurers operate in Canada: CMHC (Crown corporation), Sagen (private — formerly Genworth Canada), and Canada Guaranty (private). On standard conventional borrowers, all three charge identical premiums.
Standard premium tiers
- LTV 65.00% or less: 0.60%
- LTV 65.01–75.00%: 1.70%
- LTV 75.01–80.00%: 2.40%
- LTV 80.01–85.00%: 2.80%
- LTV 85.01–90.00%: 3.10%
- LTV 90.01–95.00%: 4.00%
Note: minimum 5% down on the first $500,000 of purchase price, then 10% on the portion above. Insured mortgages are capped at $1.5 million purchase price.
Where the three insurers actually differ
Standard premiums match — but the niche programs don't. Look at:
- BFS / self-employed: Sagen and Canada Guaranty have more flexible income documentation than CMHC for stated-income BFS
- New immigrants / newcomers: all three have programs but documentation requirements differ
- Second / vacation homes: Sagen and Canada Guaranty support up to 95% LTV; CMHC has tighter rules
- Rental properties: limited insurance availability across all three for non-owner-occupied
- Eco / efficient-home premium refund: CMHC and Sagen both offer up to 25% refund on eligible green homes
PST on the premium
Three provinces charge provincial sales tax on the insurance premium itself, payable upfront at closing (cannot be financed):
- Ontario: 8% PST
- Quebec: 9% PST
- Saskatchewan: 6% PST
Plan for that out-of-pocket cost on top of the financed premium.
How to reduce the premium
- Push your down payment into the next LTV bracket — moving from 91% to 89% LTV saves $9/month per $100k of mortgage forever
- Use a savings plan to hit the next bracket before closing
- Investigate first-time-buyer programs that supplement your down payment without triggering higher LTV
- For new builds: check eligibility for the energy-efficient premium refund — up to 25% back