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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CMHC Mortgages: A Guide to Insured Home Loans and Down Payments

Insured Mortgage Program Overview

The CMHC (Canada Mortgage and Housing Corporation) Residential Mortgage program is designed to help homebuyers secure financing with lower down payments. By providing mortgage insurance, CMHC mitigates lender risk, enabling borrowers to qualify for home loans more easily. This program primarily benefits first-time buyers and those with limited upfront capital, facilitating homeownership for Canadians.

Minimum Down Payment Requirements

The CMHC-insured mortgage program requires a minimum down payment based on the property’s purchase price:

  • 5%: For properties up to $500,000

  • 10%: For the portion of the purchase price between $500,000 and $999,999

  • 20%: Required for properties priced at $1 million or more, as these are not eligible for CMHC insurance


For example, if you purchase a home for $600,000:

  • The first $500,000 requires a 5% down payment ($25,000).

  • The remaining $100,000 requires a 10% down payment ($10,000).

  • Total down payment: $35,000.

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Maximum Purchase Price as of December 2024

As of December 2024, the maximum purchase price for CMHC-insured mortgages remains capped at $999,999. Properties priced at $1 million or more do not qualify for CMHC insurance, necessitating a 20% down payment and uninsured financing options.

Maximum Purchase Price as of December 2024

As of December 2024, the maximum purchase price for CMHC-insured mortgages remains capped at $999,999. Properties priced at $1 million or more do not qualify for CMHC insurance, necessitating a 20% down payment and uninsured financing options.

Example: For a $400,000 mortgage with a 10% down payment, the premium would be:

$400,000 × 3.10\% = $12,400

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.
Cstomized Mortgage solutions_image
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.

Example: For a $400,000 mortgage with a 10% down payment, the premium would be:

$400,000 × 3.10\% = $12,400

Cost of Insurance Taxes

Mortgage insurance premiums are subject to provincial sales tax (PST) in Manitoba, Ontario, and Quebec:

  • Ontario: 8%

  • Manitoba: 7%

  • Quebec: 9%

These taxes must be paid at closing and cannot be rolled into the mortgage.

Amortization Period

CMHC-insured mortgages have a maximum amortization period of 25 years. This shorter period helps reduce overall interest costs but results in slightly higher monthly payments compared to a 30-year amortization.

Number of Properties Allowed

CMHC-insured mortgages are generally available for one owner-occupied property. Additional properties (such as investment properties) are not eligible for CMHC insurance.

Rental Income Considerations Under the CMHC Home Purchase Program

For borrowers purchasing a home with a rental unit, CMHC allows up to 50% of rental income to be included in the borrower’s income calculations. This helps increase borrowing capacity. The rental unit must be legal, and the income must be supported by documentation (such as rental agreements).

Types of Properties Permitted Under the CMHC Residential Purchase Program

CMHC insurance covers the following types of residential properties:

  • Single-family homes

  • Semi-detached homes

  • Townhouses

  • Condominiums

  • Multi-unit properties (up to 4 units, with one unit owner-occupied)

Properties must be located in Canada and meet CMHC’s minimum housing standards.

How to Switch or Renew an Insured Mortgage with Another Lender

Switching or renewing a CMHC-insured mortgage is straightforward:

  • Check Renewal Options: Contact RateShop Mortgages to compare offers from multiple lenders.

  • Verify Eligibility: Ensure your mortgage balance and property value meet CMHC criteria.

  • Transfer Insurance: CMHC insurance is portable, so if you switch lenders, the existing insurance can be transferred.

  • Submit Documents: Provide proof of income, property details, and current mortgage statements.

  • Finalize the Switch: Your new lender will coordinate with CMHC to complete the transition without requiring a new premium (unless the loan amount increases).

Start Your Refinancing Journey with RateShop Mortgages Today

By partnering with RateShop Mortgages, borrowers can access expert advice and competitive CMHC-insured mortgage solutions tailored to their needs.

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RateShop Inc. is a Mortgage Brokerage offering lowest mortgage rates to Canadians. We are provincially licensed in the following provinces: Mortgage Brokerage Ontario FSRA #12733, British Columbia BCFSA #MB600776, Alberta RECA #00523056P, Saskatchewan FCAA #00511126, PEI #160622, New Brunswick FCNB #88426, Newfoundland/Labrador. Our Quebec Mortgage Transactions are serviced by Orbis Mortgage Group AMF# 181136.

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