CMHC (Canada Mortgage and Housing Corporation)CMHC (캐나다 모기지주택공사)

What is it?

CMHC (Canada Mortgage and Housing Corporation) is a federal Crown corporation (a company owned by the Government of Canada). It is run by a Board and is responsible to Parliament through a Minister.

CMHC says that for 80 years it has worked on housing with industry, other governments and communities. Its work includes mortgage insurance, funding for housing projects, and housing market data and research.

Most home buyers meet CMHC through mortgage insurance. CMHC does not lend you money like a bank. A bank or other lender gives the loan, and CMHC insures that loan.

What it does for buyers: mortgage loan insurance

• If your down payment is less than 20% of the price, you need mortgage loan insurance. It protects your lender if you cannot make your payments. It does not protect you.
• CMHC says the insurance lets you borrow up to 95% of the price and still get a reasonable interest rate with a smaller down payment.
• Your lender arranges the insurance. CMHC suggests that, when you negotiate your loan terms, you ask for the mortgage to be CMHC insured.
• The lender pays the premium but usually passes it on to you. You can pay it in one lump sum or add it to your mortgage and pay it monthly.
• CMHC is not the only insurer. Insurers owned by private companies include Sagen (formerly Genworth Canada, which calls itself Canada’s largest private-sector mortgage insurer) and Canada Guaranty (which says it has been a 100% Canadian-owned private insurer since 2010). Your lender usually picks the insurer.

Minimum down payment and price cap

To get CMHC insurance, your minimum down payment depends on the price (checked October 30, 2026).

A home you will live in (homeowner loan) must cost less than $1,500,000; a small rental property (small rental loan), less than $1,000,000. Budget 2026 says insurance changes for 3- and 4-unit (“missing middle”) homes take effect on February 1, 2027, and proposes raising the home price limit for “optional mortgage insurance” from $1,000,000 to $1,500,000 and allowing 30-year amortizations, “provided that at least one borrower is a first-time home buyer or the home is newly built” (the budget’s words; not law yet, no date). Details are in the “Mortgage default insurance” entry.

How much is the premium?

The premium is a percentage of the loan, and it is higher when your loan-to-value ratio (LTV) is higher. Your lender tells you the exact amount when you apply. Here is part of CMHC’s published table.

In Ontario, provincial sales tax (PST) applies to the premium, and that tax cannot be added to the loan. The extra premium for a 30-year amortization (CMHC Home Start) and a PST example are in the “Mortgage default insurance” entry.

Who can qualify?

• The home must be in Canada, and the purchase must not be banned by the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
• Borrowers can be citizens, permanent residents, or non-permanent residents legally allowed to work in Canada (for example, with a work permit) (CMHC Purchase, homes you live in).
• Your housing cost ratio (GDS: principal, interest, property tax, heating and 50% of condo fees) must be 39% or less of gross income, and your total debt ratio (TDS) 44% or less.
• These ratios are calculated at the higher of your contract rate plus 2%, or 5.25%.
• At least one borrower (or guarantor) needs a credit score of at least 600. CMHC says it may consider other ways to show creditworthiness if you have no Canadian credit history.
• The maximum amortization is 25 years. First-time buyers or buyers of a newly built home may get 30 years through CMHC Home Start.

Does it cover homes other than houses?

CMHC says it insures many property types, including duplexes, condos, manufactured or mobile homes, rental homes and retirement homes.

Homes of 1 to 4 units that you live in qualify. For 1 to 2 units, LTV can be up to 95% (5% of the first $500,000 plus 10% of the rest); for 3 to 4 units, up to 90% (at least 10% down).

There are also insurance products for investors who build or buy larger multi-unit rental buildings, but the rules are different and we did not verify them for this page. In that case, check CMHC’s website or ask a mortgage professional.

Example calculation

This is a reference estimate. The $760,000 price and down payment comparison come from CMHC’s CMHC Purchase page, and the premium uses CMHC’s table. PST on the premium cannot be added to the loan, so you pay it separately. Your lender sets the real amounts.

Good to know

• CMHC insurance is for the lender. CMHC explains that if you default and the sale of the home does not cover the debt, you may still owe the shortfall.
• The premium is a cost that is gone once you buy, and if you add it to the mortgage you also pay interest on it.
• If you buy or build an energy-efficient home, CMHC Eco products can refund up to 25% of the premium.
• If you have a CMHC-insured loan from on or after April 1, 1996 and move to another home, “portability” may reduce or remove the new premium. Ask your lender.
• CMHC says lenders require mortgage loan insurance when your down payment is less than 20%. With 20% or more down, it is usually not required. CMHC’s table still lists rates for LTV of 80% or less (0.60%, 1.70%, 2.40%), so ask your lender whether it wants insurance.