Down payment, mortgage insurance and cash to close

The price-based minimum

Below C$1.5 million, the minimum is 5% of the first C$500,000 and 10% of the portion above C$500,000. At C$1.5 million or more, this tool uses 20%. A lender can require more; meeting the minimum does not establish approval.

The C$750,000 example needs C$25,000 on the first C$500,000 and C$25,000 on the remaining C$250,000.

Insurance changes the loan amount

Mortgage default insurance protects the lender if the borrower cannot pay. It is different from home insurance. With less than 20% down, an eligible purchase typically needs default insurance.

For a C$750,000 home and C$50,000 down, the base loan is C$700,000. For a 25-year insured scenario, the standard estimate applies a 4% premium of C$28,000. If financed, the mortgage becomes C$728,000, not C$700,000.

Use that financed balance when estimating mortgage payments. Including the premium in the loan means interest is charged on it too. The calculation assumes a traditional down-payment source and an owner-occupied one- or two-unit home; it does not confirm eligibility or include premium rebates.

Keep an additional cash budget

Any applicable provincial sales tax on the premium cannot be added to the mortgage. It is excluded from our result. Legal and registration costs, transfer taxes, adjustments and other purchase expenses also need their own estimates.

Make a simple three-column budget: cash down, costs financed into the loan and other cash costs. Ask the lender and closing professional which amounts belong in each column. This prevents a financed premium from being counted twice and stops a minimum down payment from looking like the total cash required.

Leave a separate amount for expenses after the move. The calculator does not set that reserve. Use the closing costs & transfer tax calculator to estimate major provincial transfer taxes, registry fees and modelled qualifying rebates separately.

Where a 30-year insured loan differs

Broader eligibility for 30-year insured amortizations took effect on 15 December 2024 for first-time buyers and buyers of new builds. For high-ratio insured loans, the federal rules require at least one qualifying first-time buyer or a newly constructed home.

The calculator now supports those eligible 30-year scenarios and adds CMHC’s 0.20 percentage-point surcharge to the standard premium rate. It asks you to identify the applicable eligibility route, but it does not independently verify every lender or insurer condition.