CMHC Mortgage Insurance Rates
If you have never had a mortgage before, chances are you are not very familiar with CMHC (Canadian Mortgage & Housing Corporation) mortgage insurance rates or more commonly referred to as CMHC insurance. CMHC insurance applies to all mortgages where the down payment is less than 20% of the home purchase price. The CMHC applies a penalty that can range from 1.75% – 2.95%, for all mortgages with less than a 20% down payment. This penalty will be added to the total mortgage amount.

Home owners with smaller down payments (less than 20%) are considered high risk, and are therefore subject to CMHC insurance. Although, CMHC insurance can cost home buyers thousands of dollars, it is actually beneficial to keeping interest rates lower for all home buyers. The good news is that the CMHC mortgage insurance will be added directly to your mortgage, so unlike lawyer fees and land transfer taxes, it is not an of pocket up front cash expense.

CMHC Mortgage Insurance Rate Examples

5% Down Payment:
Purchase Price: $500,000
Amortization Period: 25 Years
CMHC Mortgage Insurance: $13,000.00
Total Mortgage: $488,000.00

10% Down Payment:
Purchase Price: $500,000
Amortization Period: 25 Years
CMHC Mortgage Insurance: $9,000.00
Total Mortgage: $459,000.00

15% Down Payment:
Purchase Price: $500,000
Amortization Period: 25 Years
CMHC Mortgage Insurance: $7,440.00
Total Mortgage: $432,000.00

20% Down Payment:
Purchase Price: $500,000
Amortization Period: 25 Years
CMHC Mortgage Insurance: $0.00
Total Mortgage: $400,000.00

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