If you buy a home in Canada with less than 20% down, your mortgage must carry default insurance, most often from CMHC (Canada Mortgage and Housing Corporation), or from private insurers Sagen or Canada Guaranty on nearly identical terms. It protects the lender, not you, but it is what lets you buy with as little as 5% down. Here is how the premium, the rules and the down payment tiers work in 2026.
Minimum down payment in Canada
| Purchase price | Minimum down payment |
|---|---|
| Up to C$500,000 | 5% of the price |
| C$500,000 – C$1,499,999 | 5% of the first C$500,000 + 10% of the portion above |
| C$1,500,000 and above | 20% (not eligible for mortgage insurance) |
Since December 15, 2024, the insured price cap has been C$1.5 million, up from C$1 million. For example, a C$600,000 home needs at least C$25,000 + C$10,000 = C$35,000 down (5.83%). A C$1.5M home needs at least C$125,000 if it is priced just under the cap, and C$300,000 at or above it.
CMHC premiums
The premium is a one-time percentage of the loan amount, set by your loan-to-value ratio:
| Down payment | Premium (% of loan) |
|---|---|
| 5% – 9.99% | 4.00% |
| 10% – 14.99% | 3.10% |
| 15% – 19.99% | 2.80% |
| 20% or more | None required |
A 0.20% surcharge is added for a 30-year amortization. The premium is almost always added to the mortgage and paid off over the loan, not paid in cash. In Ontario, Quebec and Saskatchewan, however, provincial sales tax on the premium must be paid in cash at closing.
Example: a C$600,000 home
- Minimum down (C$35,000): loan C$565,000 × 4.00% = C$22,600 premium, for a total mortgage of C$587,600.
- 10% down (C$60,000): loan C$540,000 × 3.10% = C$16,740.
- 15% down (C$90,000): loan C$510,000 × 2.80% = C$14,280.
Going from minimum down to 10% down cuts the premium by almost C$6,000 and shrinks the loan. That is worth weighing against how long it would take to save the extra C$25,000.
30-year amortization: who qualifies
Insured mortgages are normally limited to 25 years. Since December 2024, all first-time buyers, and buyers of newly built homes, can choose a 30-year amortization on an insured mortgage. The longer term lowers the monthly payment, but it adds the 0.20% premium surcharge and more lifetime interest.
The stress test still applies
Insured or not, you must qualify at the greater of your contract rate + 2% or 5.25%, with a gross debt service (GDS) ratio of up to 39% and total debt service (TDS) of up to 44% under CMHC's limits. That is usually what caps your purchase price, more than the down payment. See what your income supports on the Canadian affordability by income pages.
Other rules to know
- The home must be owner-occupied (1–4 units), and your down payment must come from your own savings, a gift from family, or the RRSP Home Buyers' Plan (up to C$60,000 per person). The FHSA can also be used.
- Insurance is portable when you move, and a switch to a new lender at renewal keeps the insured status (and the lower insured rates).
- Insured mortgages often get lower interest rates than uninsured ones at 20%–25% down, because the lender carries no default risk.
Run your numbers
The Canadian down payment calculator applies the minimum down payment tiers and the CMHC premium for any price. The closing costs calculator adds land transfer tax, legal fees and PST on the premium.
Published September 22, 2026. Figures are estimates for education only, not financial advice; program rules and rates change, so confirm with a licensed lender. Spotted an error? Let us know.