CMHC has recently posted a “new calculator”:http://www.cmhc-schl.gc.ca/en/co/buho/buho_013.cfm# on it’s website, to assist 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 you are purchasing (or in other words, you are putting less than 20% down) your lender will require the mortgage to be insured with one of Canada’s two mortgage loan insurance provider, CMHC being one of them.
The insurance premium is actually charged to the lender but they will 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 you 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 actual mortgage amount, give this new calculator a whirl.
Simply plug in the purchase price, your downpayment and then choose your amortization from the scale. The calculator will then show you the premium you can expect pay based on your downpayment.