CMHC Insurance calculator
Easily Calculate Your CMHC Insurance Premium
When purchasing a home in Canada with a down payment of less than 20%, CMHC mortgage insurance is required. Our CMHC Insurance Calculator helps you determine the premium amount based on your mortgage amount, down payment, and loan terms.
Key Features of Our CMHC Insurance Calculator:
- Accurate CMHC Insurance Premium Calculation: Get precise estimates for your CMHC mortgage insurance premium.
- Down Payment Impact Analysis: See how different down payment percentages affect your insurance cost.
- Affordability Insights: Understand how CMHC insurance affects your total loan amount and monthly payments.
- Payment Options: Choose to pay the premium upfront or add it to your mortgage.
How to Use the CMHC Insurance Calculator
- Enter Your Home Purchase Price: The total value of the home you wish to buy.
- Input Your Down Payment Amount or Percentage: Select a percentage (5%-19.99%) to see how it impacts CMHC insurance.
- View Your Insurance Premium: The calculator will display the CMHC mortgage loan insurance premium as a percentage of the loan and in dollar amount.
- Check Affordability Impact: See how the premium affects your total mortgage amount and monthly payments.
Understanding CMHC Insurance in Canada
What is CMHC Insurance?
CMHC mortgage insurance protects lenders in case of borrower default, enabling Canadians to buy homes with as little as 5% downpayment. It makes homeownership more accessible by reducing lender risk.
How is CMHC Insurance Calculated?
Knowing how to calculate CMHC insurance is essential for homebuyers. The insurance premium is calculated based on the loan-to-value (LTV) ratio, using the following structure:
- 5% down payment → 4.00% of the mortgage amount
- 10% down payment → 3.10% of the mortgage amount
- 15% down payment → 2.80% of the mortgage amount
For example, if you purchase a $500,000 home with a 10% down payment:
- Mortgage Amount: $500,000 – $50,000 = $450,000
- CMHC Premium (3.10%): $450,000 × 3.10% = $13,950
Our CMHC Insurance Calculator Canada simplifies this process for you.
Impact of CMHC Insurance on Mortgage Payments
Loan Amount with CMHC Premium Added
If the premium is rolled into the mortgage, the total loan amount increases:
- $450,000 loan + $13,950 CMHC insurance = $463,950 total loan
This increases your monthly mortgage payments and total interest over time.
Avoiding or Reducing CMHC Insurance
- Save for a 20% down payment to avoid CMHC insurance.
- Increase your down payment to lower the premium.
- Consider co-applicants to improve affordability.
CMHC Insurance Calculator for Different Scenarios
Our calculator provides region-specific insights, including:
- CMHC Insurance Calculator Ontario – Accounts for provincial regulations.
- CMHC Default Insurance Calculator – Helps determine default insurance costs based on loan value.
FAQs on mortgage payment calculator
How to calculate CMHC insurance premium?
Use our CMHC Insurance Calculator to determine your premium based on the loan amount and down payment percentage.
What is the minimum down payment required for CMHC insurance?
A minimum of 5% down payment is required for homes under $500,000.
Can I avoid CMHC insurance?
Yes, by making a 20% or higher down payment, you can avoid CMHC mortgage loan insurance.
What happens if my home price is over $1M?
CMHC insurance is not available for homes priced over $1 million. A 20% down payment is required.
Does CMHC insurance impact my monthly mortgage payments?
Yes, if added to the mortgage, CMHC insurance increases your total loan amount, leading to higher monthly payments.
Final Thoughts: Plan Your Home Purchase with Confidence
Understanding CMHC mortgage insurance is essential for Canadian homebuyers. Use our CMHC Insurance Calculator to estimate your costs and plan accordingly.
Get Expert Mortgage Advice with Pegasus Mortgage Lending
Start your homeownership journey with confidence. Use our CMHC Insurance Calculator to plan your mortgage and connect with Pegasus Mortgage Lending for expert guidance.
