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Down payment + CMHC

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

Federal minimum for this price: $47,000

Your CMHC math

CMHC premium
$20,460
Loan-to-value
91.7%
Premium rate
3.10%
Insured principal
$680,460
PST (8.00%)
$1,637
PST of 8.00% applies to the CMHC premium in your province and is paid at closing (not financed).
Insured principal$680,460
Mortgage principal97.0%
CMHC premium3.0%

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

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