BC CMHC insurance
What is CMHC Insurance?
Canadian Mortgage and Housing Corporation (CMHC) mortgage insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. CMHC mortgage insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment starting at 5%* — with interest rates comparable to those offered with a larger down payment. To obtain CMHC mortgage insurance, lenders pay an insurance premium. Typically, your lender will pass this cost on to you. The premium is based on the loan-to-value ratio (mortgage loan amount divided by the purchase price). The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.
How much is CMHC?
The following table provides you with a general idea of the premiums charged by CMHC. The exact premium will be calculated when you apply for a mortgage and provincial sales tax may apply.
*The minimum down payment requirement for CMHC mortgage insurance depends on the purchase price of the home. For a purchase price of $500,000 or less, the minimum down payment is 5%.
When the purchase price is above $500,000, the minimum down payment is 5% for the first $500,000 and 10% for the remaining portion. CMHC mortgage loan insurance is available only for properties with a purchase price or as-improved/renovated value below $1,000,000.
