CMHC Residential Mortgages up to $1.5m Purchases
Get approved with low down payment on insured mortgages
5% Down-payment programs
Owner occupied & Rental properties
upto 35 Year Amortization options
Choice of Insurers CMHC, Sagen & Canada Guaranty
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Homeownership with CMHC Mortgages
CMHC-Insured Mortgages in Canada
What is a CMHC Mortgage and How Does It Work?
A CMHC mortgage is a home loan insured by the Canada Mortgage and Housing Corporation (CMHC), a federal agency. This insurance protects lenders if borrowers default, allowing them to offer mortgages with down payments as low as 5%. CMHC mortgages make homeownership more accessible, especially for first-time buyers.
CMHC Mortgage Insurance: Who Needs It and Why?
CMHC insurance is required for homebuyers with a down payment of less than 20%. It protects lenders and allows borrowers to access lower interest rates for Canada and easier approval. It’s ideal for first-time buyers or those with smaller down payments.
CMHC Mortgage Calculator: How Much Will It Cost You?
The CMHC mortgage calculator helps estimate insurance premiums based on your down payment and home price. For example, a 5% down payment on a $500,000 home results in a $475,000 mortgage
CMHC Mortgage Rates: What to Expect
CMHC-insured mortgages often come with competitive Canada mortgage lending rates because lenders face less risk. Borrowers can access rates comparable to conventional mortgages, making it a great option for those with smaller down payments.
Example: For a $400,000 mortgage with a 10% down payment, the premium would be:
$400,000 × 3.10\% = $12,400
5 Year - Fixed Term from
3.94%
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CMHC Mortgage Requirements: Eligibility and Documentation
To qualify for a CMHC-insured mortgage, you need:
A minimum credit score of 600.
A down payment of 5%-19.99%.
Proof of income and employment.
A property that meets CMHC standards.
CMHC First-Time Home Buyer Programs
CMHC offers programs like the First-Time Home Buyer Incentive, which provides shared equity mortgages to reduce monthly payments. These programs make homeownership more affordable for first-time buyers.
| Down Payment (%) | Premium (% of Loan Amount) |
|---|---|
| Refinance | Allows an Equity Take-Out (ETO) for a variety of purposes including investment, renovations, asset enhancement, combining 1st & 2nd mortgages and debt consol- idation (excluding default management). |
| Purchase plus Improvement | Helps clients purchase an eligible single family residential dwelling PLUS make tailored improvements immediately. |
| New to Canada | his program helps qualified home buyers who have immigrated or relocated to Canada within the last 5 years to purchase a property |
| Rental Investment | The program is intended for borrowers who would like to purchase an investment property, or who currently own an investment property and would like to refinance. |
| Secondary Home | his program helps homeowners to finance a secondary home for owner-occupied purposes, or to be occupied by immediate family members |
| Bridge Loan | This program provides interim financing used to “bridge” a mortgagor’s down payment, which is not available at the time of closing, but will be repaid from the proceeds of the sale of their existing property. |
Pros and Cons of CMHC-Insured Mortgages
Pros:
Lower down payment (as low as 5%).
Access to competitive mortgage rates and Canada-wide lenders.
Easier approval for first-time buyers.
Cons:
Insurance premiums add to the loan cost.
Stricter eligibility requirements.
Limited to primary residences (no investment properties).
How to Apply for a CMHC-Insured Mortgage
Find a Lender
: Work with a mortgage broker or lender that offers CMHC-insured mortgages.
Check Eligibility
: Ensure you meet credit score, income, and down payment requirements.
Submit Documents
: Provide proof of income, employment, and identification.
Pay the Premium
: The insurance premium is added to your mortgage amount.
FAQs About CMHC Mortgages
Can I avoid CMHC insurance?
Yes, by making a down payment of 20% or more.
Is CMHC insurance a one-time fee?
Yes, but it’s added to your mortgage and paid over time.
Can I use CMHC programs for investment properties?
No, CMHC-insured mortgages are only for primary residences.
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