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CMHC Mortgage Loan Insurance: Who Qualifies and What You Get

Learn how mortgage insurance helps you buy a home in Canada with a down payment of less than 20%.

CMHC Mortgage Loan Insurance is a program that makes it easier to secure financing for residential properties. It is designed to help people purchase homes when they do not have a large upfront payment.

Who it's for

This scheme is for homebuyers who have a down payment of less than 20% of the home's purchase price.

What you get

By using this insurance, you can access financing for residential projects that might otherwise be difficult to fund without a larger initial investment.

What it costs you

You will need to pay an insurance premium. This cost is typically added to your total mortgage amount rather than being paid as a separate upfront fee.

The catch to know

In most markets, this insurance is only available for homes with a purchase price of less than $1 million.

How to apply

  1. Speak with your mortgage lender or financial institution.
  2. Provide your financial details and property information to your lender.
  3. Your lender will work with the insurance provider to process the application.
  4. Review the terms and the premium amount added to your mortgage.

For more information, visit the official portal: https://www.cmhc-schl.gc.ca/consumers/home-buying/mortgage-loan-insurance