A guide to Ontario CMHC insurance

Mortgage default insurance regulation (often known as CMHC insurance regulation) and premium rates in Ontario are the same across Canada. Insurance premium rates range from 1.80% to 4.00% of your mortgage amount. Federal regulations on mortgage default insurance include the following:

Mortgage default insurance must be purchased for all homes with less than 20% down payment.

Homes purchased for more than $1 million are not eligible for mortgage default insurance, therefore requiring homeowners to put more than 20% down.

The maximum amortization period on insured mortgages is 25 years.

Homes sold over $500,000 require a minimum down payment of 5% of the first $500,000, and 10% of any amount over $500,000.

The mortgage default insurance premium is added to your mortgage amount, and is paid off over your amortization period through monthly mortgage payments.