Cool Tool - CMHC’s Mortgage Loan Insurance Calculator

CMHC has recently posted a new calculator on it’s website which assists homebuyers with estimating the cost of its Mortgage Loan Insurance. In Canada, in order to obtain a mortgage for more than 80% of the value of the home (or in other words, when your downpayment is less than 20%) your lender will require the mortgage to be insured with one of Canada’s two mortgage loan insurance providers, CMHC being one of them.

This type of insurance protects the lender incase the homeowner defaults on their mortgage.

The premium is actually charged to the lender but they pass the bill on to you and you can choose to pay it in one lump sum, up front or it can be added to the mortgage and included in your monthly mortgage payments.

Most mortgage calculators that you’ll find online will not include the additional monthly premium for CMHC insurance when calculating your potential mortgage payments, especially if they are American calculators. To be sure you aren’t taken by surprise by the additional insurance amount, give this new calculator a try.

Simply plug in the purchase price, your downpayment and then choose your amortization on the sliding scale. The calculator will then show you the insurance premium you can expect to pay.

What’s mortgage loan insurance and why do you have to pay for it at all? Go here for more info.


As the company’s first employee, Jennifer has been a Licensed Mortgage Associate since 2004, but her current role is not focused on mortgages. She is the resident blog writer and…

Learn more about Jennifer Rochford