Tej Thakor Broker of Record / Owner 647-684-1731
Financing & Mortgage

Mortgage Default Insurance (CMHC)

Required when your down payment is under 20% — it lets you buy with as little as 5% down.

Who it's for

Buyers with <20% downOntario / Canada

Official source

CMHC ↗Verify current details here

Last reviewed

2026Subject to change

Download — Mortgage Default Insurance (CMHC) Fact Sheet

Free quick-reference guide (PDF, courtesy of TRREB). Save or print for easy reference.

⬇ Government-Backed Mortgage Insurance (PDF)

Overview

Mortgage default (loan) insurance protects the lender if a borrower defaults, allowing Canadians to buy with as little as 5% down. Premiums (roughly 2.8%–4.0% of the mortgage) are added to your loan.

Eligibility

✓  Down payment between 5% and 19.99%
✓  Home price under $1.5M (as of Dec 2024)
✓  Meet lender + insurer qualification

Benefits

★  Buy sooner with a smaller down payment
★  Access better interest rates than uninsured in some cases
★  30-year amortization now available for first-time buyers & new builds

How to Apply

→  Get pre-approved with a mortgage professional
→  Insurer (CMHC, Sagen, Canada Guaranty) approves with your lender
→  Premium is added to your mortgage
Official program details — CMHC ↗

Mortgage Default Insurance (CMHC) — FAQs

Common questions about this program.

How much down payment do I need?

5% on the first $500,000, 10% on the portion $500K–$1.5M, and 20% at $1.5M+.

Related Resources

All Government Programs → Free Home Evaluation → Buyer Resources → Mortgage Calculator → Land Transfer Tax Calculator → FHSA / RRSP / TFSA Guide →

Buying, selling, investing or leasing in Ontario?

Contact Tej Thakor, Broker of Record at Royal LePage Terra Realty, for professional real estate guidance across the GTA and surrounding areas — in English, Hindi & Gujarati.

This page is for general informational purposes only and is not legal, tax, or financial advice. Program details, eligibility, amounts, and deadlines change frequently — confirm current information with CMHC (linked above) and consult a qualified professional before relying on this information.
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