Mortgage Financing
CMHC-Insured Loans
Buying a home with less than 20% down? CMHC mortgage insurance makes homeownership accessible — and we help you navigate the qualification process from start to finish.
What Is CMHC Mortgage Insurance?
CMHC (Canada Mortgage and Housing Corporation) mortgage insurance — also called mortgage default insurance — is required by federal law when your down payment is less than 20% of the purchase price. It protects the lender in the event of default, which in turn allows lenders to offer mortgages to buyers with smaller down payments. The insurance premium is added to your mortgage balance and amortized over the life of the loan. Mortgage default insurance is also available through Sagen and Canada Guaranty under the same federal rules.
Who Qualifies?
Down payment of 5% to 19.99%
Mortgage default insurance is required for any purchase with less than 20% down on eligible properties. Minimum down payment rules vary by purchase price — see the breakdown below.
Purchase price up to $1.5 million
As of December 15, 2024, insured mortgages are available on properties priced up to $1.5 million. Properties above this threshold require at least 20% down and are not eligible for default insurance.
Owner-occupied properties
The property must be your primary residence. Rental and investment properties are generally not eligible for mortgage default insurance.
Credit and income requirements
Lenders apply their own qualification criteria in addition to insurer guidelines. We review your full profile and identify the lenders best suited to your situation.
Key Details
Insurance Premium
The premium ranges from 2.80% to 4.00% of the insured mortgage amount, depending on your down payment. It is added to your mortgage balance — not paid upfront — and amortized over the loan term.
Minimum Down Payment Rules
5% on the first $500,000 of the purchase price; 10% on any portion between $500,000 and $999,999. A minimum of 20% is required for properties priced at $1,000,000 or more.
Amortization
Insured mortgages may be eligible for amortization periods of up to 30 years for qualifying first-time buyers purchasing new construction, subject to lender and insurer approval.
Mortgage Stress Test
All insured mortgages are subject to the federal mortgage stress test. You must qualify at the greater of the Bank of Canada's minimum qualifying rate or your contract rate plus 2%. Rules may change — confirm current requirements with us.
Premium Rate Table
Premium is added to your mortgage balance and amortized over the life of the loan.
A Note on CMHC vs. Other Insurers
In Canada, mortgage default insurance is also offered by Sagen (formerly Genworth) and Canada Guaranty. All three operate under the same federal rules. We work with lenders across all three insurers and will identify the best fit for your file.
Our Process
Eligibility Review
We confirm your down payment, purchase price, and credit profile to determine your CMHC eligibility.
Lender Selection
We match you with lenders who offer the most competitive insured mortgage rates for your situation.
File Preparation
We prepare your complete application — income documents, down payment proof, and property details.
Approval & Closing
We manage the approval process and guide you through conditions and closing.
Ready to Buy With Less Than 20% Down?
We'll walk you through your options and make sure you understand every cost before you commit.
The information on this page is provided for general informational purposes only and does not constitute financial, legal, or mortgage advice. Mortgage default insurance rules, premium rates, purchase price limits, amortization eligibility, and stress test requirements are set by federal regulators and insurers (CMHC, Sagen, Canada Guaranty) and are subject to change without notice. Individual qualification depends on lender criteria, credit profile, income, and property type. Groupe Summit Capital carries out all mortgage brokerage activities on behalf of NordEst, cabinet en courtage hypothécaire. Always consult a licensed mortgage professional for advice specific to your situation.