CMHC Insurance

Mortgage default insurance — also called CMHC insurance after its largest provider — protects the lender if the borrower defaults. It's mandatory in Canada whenever the down payment is less than 20% of the purchase price (a high-ratio mortgage). Three federally regulated providers offer it: CMHC (Canada Mortgage and Housing Corporation, a Crown corporation), Sagen (formerly Genworth Canada, private), and Canada Guaranty (private). All three operate under the same federal program and publish identical premium rates for standard tiers. From the borrower's perspective, the experience is the same regardless of which insurer the lender selects — premium rates are identical. Standard premium tiers (verified against Sagen's Premium Rates Chart and Canada Guaranty's Products at a Glance, May 2026): • 80.01–85% LTV (15–20% down): 2.80% of the loan • 85.01–90% LTV (10–15% down): 3.10% of the loan • 90.01–95% LTV (5–10% down): 4.00% of the loan • 30-year amortization surcharge (when eligible): +0.20% per all three insurers' published rules The premium is added to the mortgage principal (not paid up front). Higher down payments mean a smaller premium. As of 2024, insured mortgages cap at $1.5 million purchase price and a 25-year amortization (30-year for first-time buyers and new-build purchases). Default insurance is one-time and travels with the mortgage — if you renew with a different lender at maturity, the existing insurance carries over. Note: The Brkrr calculator covers the standard tiers shared across all three insurers. Niche products (e.g. Canada Guaranty's Flex 95 Advantage, refi-specific lower-LTV tiers) are not modeled.