Default insurance required when your down payment is less than 20% of the purchase price.
Despite the name, CMHC insurance protects the lender, not you. It is provided by three insurers in Canada: CMHC (Canada Mortgage and Housing Corporation), Sagen (formerly Genworth), and Canada Guaranty. The premium is a percentage of your mortgage amount: 4.00% for 5% down, 3.10% for 10% down, 2.80% for 15% down. The premium is added to your mortgage and paid over the life of the loan. As of December 2024, CMHC insurance is available on properties up to $1.5 million (raised from $1 million).
Related terms: Loan-to-Value (LTV) Ratio | Down Payment