Down payment + CMHC premium calculator
Federal minimums, CMHC premium tiers, and PST on the premium (ON / QC / SK). Updated for the current CMHC schedule and 2024 first-time-buyer 30-year amortization rule.
Your purchase
Your CMHC math
Premium added to principal and amortized; PST in ON/QC/SK is paid at closing.
Federal minimum down payment
- Up to $500,000: 5%
- $500,000–$1,500,000: 5% on the first $500k, then 10% on the portion above
- Over $1,500,000: 20% minimum (no CMHC insurance available)
CMHC premium tiers
Premiums apply when the down payment is less than 20%. The percentage is calculated on the mortgage amount and added to the principal — you finance it, not pay it up front.
- Up to 65% LTV: no premium
- 65%–75%: 0.60%
- 75%–80%: 1.70%
- 80%–85%: 2.40%
- 85%–90%: 2.80%
- 90%–95%: 3.10%
- Over 95% (max 95%): 4.00%
PST on the CMHC premium
Ontario, Quebec, and Saskatchewan apply provincial sales tax to the CMHC premium itself. The PST is paid at closing — it's not financed. Rates: ON 8%, QC 9.975%, SK 6%.
30-year amortization for first-time buyers (2024+)
As of August 1, 2024, first-time buyers of newly built homes may qualify for a 30-year insured amortization (up from the standard 25). Builder eligibility applies — confirm with your lender. The longer amortization lowers your monthly payment but adds noticeably to lifetime interest.
The 95% LTV cliff — and how to avoid it
The largest single jump in CMHC premium is between 90% LTV (2.80%) and 95% LTV (4.00%) — and that doesn't even include the higher tier above 95% (4.00% — same rate but allowed slightly higher LTV in some programs). For a $700k home, the difference between 89% LTV and 91% LTV is $8,400 of extra premium financed into your mortgage.
If you're close to a bracket cutoff (89%, 84%, 79%), pushing your down payment up by even $5,000–$10,000 can save you thousands. Use the down payment savings goal calculator to see how a few months of extra saving moves the math.
Who can't use CMHC insurance
- Home price over $1.5 million — uninsurable, must put 20% down minimum
- Rental property mortgages with 4+ units — different program
- Vacant land — CMHC doesn't insure land-only purchases
- Some BFS (self-employed) borrowers with stated-income — go to Sagen or Canada Guaranty instead
- Refinance + take cash out — refis above 80% LTV aren't insurable
How CMHC interacts with the stress test
The CMHC premium is added to your mortgage principal, increasing the monthly payment. You're then stress-tested on that larger payment — so a CMHC-insured deal qualifies for slightly less house than a 20%-down conventional deal at the same purchase price. See stress test calc for the math.
Sources of down payment that lenders accept
- Personal savings with 90-day history
- RRSP via Home Buyers' Plan — up to $60,000 each ($120k per couple), tax-free if repaid over 15 years
- FHSA — up to $40,000 with both deduction and tax-free withdrawal
- Gift from immediate family — needs a gift letter; not repayable
- Sale of another asset — bill of sale and bank deposit traceable
- Borrowed down payment (flex down) — possible but rare; lender requires the loan payment to be in TDS
Related calculators
Questions about this calculator
- What is the minimum down payment in Canada?
- Five percent on the first portion of the purchase price, a higher percentage on the portion above the first threshold, and twenty percent once the price passes the insurance ceiling — above which mortgage default insurance is not available at all. The thresholds are federal and have been raised more than once, so check the current figures.
- What is mortgage default insurance and who does it protect?
- It protects the lender, not you, against your default. It is mandatory on any mortgage with less than twenty percent down. The premium is a percentage of the mortgage that scales with your loan-to-value ratio, and it is normally added to the mortgage rather than paid in cash.
- Is it better to put down 19% or 20%?
- Twenty percent avoids the insurance premium entirely, which is usually thousands of dollars. But insured mortgages often carry lower interest rates, because the lender's risk is covered — so at nineteen percent you pay a premium and get a better rate. Model both; the answer depends on your amortization.
- Can my down payment be a gift?
- Yes, from an immediate family member, with a signed gift letter confirming it is not repayable. Lenders will want to see the funds in your account and will trace anything that arrived recently. Borrowed down payment is a different product with different rules.