RentalMath.ca

CMHC premium calculator / $1M

CMHC insurance on a $1,000,000 home

CMHC premium on a $1,000,000 home at every down payment: minimum down $75,000, premium up to $37,000, sales tax in ON, QC and SK, and the monthly cost.

Purchase & financing

$

Insured mortgages are unavailable at $1.5M and up

%

Minimum here: $75,000 (7.5%)

%
yrs

30 yrs insured adds 0.20 points; first-time buyers and new builds only

ON, QC and SK charge sales tax on the premium

CMHC insurance premium

$27,900

3.10% of the loan at 90.0% LTV, added to your mortgage

Insured
Purchase price$1,000,000
Down payment (10%)−$100,000
Loan before premium$900,000
CMHC premium (3.10%)+$27,900
Total mortgage$927,900
Monthly payment$5,391.43
Of which the premium costs$162.11/mo
Sales tax on premium (8%)$2,232

The premium is added to your mortgage, but this tax is due in cash at closing.

LTV

90.0%

Premium rate

3.10%

Cash at closing

$102,232

Cash at closing here is the down payment plus premium tax only; add legal fees, inspection, and land transfer tax.

The premium at every down payment

Minimum down payment on a $1,000,000 home is $75,000 (7.5%). Above $500,000 the minimum is 5% on the first $500,000 plus 10% on the rest, so a flat 5% down is not allowed here. Monthly payments assume 4.99% over 25 years with the Canadian semi-annual compounding formula.

DownLoanRatePremiumTotal mortgageMonthly
5% ($50,000)below minimum$950,000n/an/an/an/a
10% ($100,000)$900,0003.1%$27,900$927,900$5,391
15% ($150,000)$850,0002.8%$23,800$873,800$5,077
20% ($200,000)$800,000none$0$800,000$4,648

Sales tax on the premium, due in cash

Three provinces tax the premium and none of them let you add the tax to the mortgage. With 10% down on $1,000,000:

Ontario (8%)$2,232
Quebec (9%)$2,511
Saskatchewan (6%)$1,674

Every other province and territory: nothing. Manitoba removed its tax on default insurance premiums in 2020.

The 10% cliff on this price

Premiums step at exactly 90% and 85% loan-to-value. At this price the minimum down payment already sits at 7.5%, so the next cliff is 15% down: $150,000 takes the premium from 3.1% to 2.8%, saving $4,100 of premium for an extra $50,000 down.

Frequently asked questions

What is the minimum down payment on a $1,000,000 home?+

$75,000, which is 7.5% of the price. The rule is 5% on the first $500,000 plus 10% on the portion above it, so a flat 5% down is not allowed at this price. Insured mortgages are available up to $1.5 million since December 15, 2024.

How much is CMHC insurance on a $1,000,000 home with 10% down?+

$27,900. The loan before insurance is $900,000, the loan-to-value is 90.0%, and the premium at that tier is 3.1% of the loan. It is added to the mortgage, so the total mortgage becomes $927,900. In Ontario, Quebec and Saskatchewan the provincial sales tax on the premium ($2,232 in Ontario) is paid in cash at closing.

How do I avoid CMHC insurance on a $1,000,000 home?+

Put down 20%, which is $200,000. That takes the loan-to-value to 80% and no default insurance is required. Compared with 10% down, the extra $100,000 of down payment removes a $27,900 premium and cuts the monthly payment from $5,391 to $4,648 at 4.99% over 25 years.

What does a 30-year amortization cost on a $1,000,000 insured mortgage?+

An extra 0.20 percentage points of premium, so 3.3000000000000003% instead of 3.1% with 10% down: a premium of $29,700 rather than $27,900. The monthly payment drops from $5,391 to $4,956. Insured 30-year amortizations are limited to first-time buyers and buyers of new construction.

Other prices and tiers

Buying a duplex to fourplex to live in? The house hacking calculator applies these premiums inside a full monthly cost. Closing costs are the other cash item: see the land transfer tax calculator.