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CMHC-insured mortgages · British Columbia
CMHC-insured mortgages: buy with less than 20% down
Mortgage default insurance lets you buy with as little as 5% down. It protects the lender, and in return insured mortgages often get some of the lowest rates.
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How it works
What is mortgage default insurance?
With less than 20% down, your mortgage must be insured by CMHC, Sagen or Canada Guaranty. You pay a one-time premium, usually added to your mortgage. It is available on homes priced under $1.5 million.
Cost
Premiums
- 5% to 9.99% down: 4.00% of the mortgage.
- 10% to 14.99% down: 3.10%.
- 15% to 19.99% down: 2.80%.
- A 30-year amortization (first-time buyers and new builds) adds 0.20%.
See your numbers in the CMHC insurance calculator. BC charges no PST on the premium.
Bigger projects
CMHC multi-unit programs
For rental buildings with 5 or more units, CMHC MLI Select and MLI Standard offer high financing and long amortizations in exchange for affordability, energy or accessibility commitments. Try the MLI Select points calculator or see construction and commercial.
Questions
Frequently asked questions
Do I pay the premium upfront?
Usually not. It is added to your mortgage and paid off over time with your payments.
Is CMHC insurance the same as mortgage life insurance?
No. Default insurance protects the lender if the mortgage is not paid. Life or disability insurance protects you and your family, and is separate.
Can I get rid of the insurance later?
The premium is a one-time cost, so there is nothing to cancel. Once you have 20% equity, your next mortgage will not need it.
Buying with less than 20% down?
Let's work out your minimum down payment and the full cost. Service in English, Punjabi and Hindi.