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Put down less than 20% on an Ontario home and you'll pay mortgage loan insurance. See your minimum down payment, the premium added to your mortgage, and the Ontario sales tax you pay in cash at closing.
An estimate using CMHC's published premiums for owner-occupied homes and Ontario's 8% sales tax, checked September 2026. Your lender and insurer confirm the final numbers.
The premium is a percentage of your mortgage, and the percentage depends on how much you borrow compared with the price (your loan-to-value). The smaller your down payment, the higher the rate.
| Down payment | Premium on the mortgage |
|---|---|
| 15% to 19.99% | 2.8% |
| 10% to 14.99% | 3.1% |
| 5% to 9.99% | 4% |
| 20% or more | None |
Choosing a 30-year amortization adds 0.2% to the rate.
Sources: CMHC premium information ↗ · CMHC 30-year amortization ↗
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% |
| $500,000 to $1,500,000 | 5% of the first $500,000, plus 10% of the rest |
| $1,500,000 or more | 20% (mortgage insurance isn't available) |
Ontario charges 8% retail sales tax on the mortgage insurance premium. Unlike the premium, it can't be added to your mortgage: your lawyer collects it on closing day, together with your land transfer tax and legal fees. On a $650,000 home with the minimum down payment, that's about $1,950 you need in cash.
Source: Government of Ontario, retail sales tax on insurance ↗
No. Mortgage loan insurance is required when your down payment is less than 20% of the purchase price. With 20% or more down, you don't pay a premium.
Your lender, not you. It lets lenders offer mortgages with as little as 5% down. It's different from mortgage life or disability insurance, which protects you and your family and is optional.
Usually not. The premium is normally added to your mortgage and paid off with your regular payments. The Ontario sales tax on the premium is the exception: it can't be added to the mortgage, so you pay it at closing.
On an insured mortgage, a 30-year amortization is available if at least one buyer is a first-time homebuyer, or if the home is a newly built home that nobody has lived in. It lowers your monthly payment but adds 0.20% to the premium rate and more interest over time.
CMHC charges a higher premium (4.50% instead of 4.00%) when a down payment under 10% comes from a non-traditional source, such as borrowed funds. This calculator assumes your down payment comes from your own savings or a gift.