Buying with less than 20% down?
Mortgage default insurance may be part of your financing. Use the calculator below to explore how your purchase price and down payment can affect the insured mortgage amount.
Your down payment affects more than what you need upfront.
When you're buying with less than 20% down, mortgage default insurance can become part of the financing. Understanding what it is — and what it isn't — makes the numbers a little easier to put into context.
It Protects The Lender
Mortgage default insurance protects the mortgage lender if a borrower is unable to make their mortgage payments. It is not the same as insurance that protects your home or your mortgage payments.
Your Down Payment Matters
For a typical high-ratio mortgage, a down payment below 20% means mortgage default insurance will generally be required.
The Premium Affects Your Mortgage
The insurance premium is based in part on the size of the mortgage and down payment. It can typically be paid upfront or added to the mortgage amount.
Want to understand the current rules?
CMHC provides current information about mortgage loan insurance, minimum down payments, eligibility requirements and insurance premiums.
A note about mortgage insurance calculations.
Calculator results and information on this page are provided for general information and planning purposes only. Mortgage insurance requirements, premiums, qualification criteria and financing options can change and will depend on your lender and individual circumstances. Confirm your financing with a qualified mortgage professional or lender.
Not sure how your down payment fits into the bigger picture?
If you're comparing purchase prices, thinking about how much to put down or simply trying to understand what the numbers mean for your home search, I'm happy to help you work through the next step.
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