Market Intelligence
Bank of Canada • Live data
2026 Rate Decisions
Mortgage FAQs
CMHC (Canada Mortgage and Housing Corporation) insurance protects the lender if you default on your mortgage. It's required when your down payment is less than 20% of the purchase price. The premium is added to your mortgage balance.
The premium is a percentage of your mortgage amount based on your loan-to-value ratio: 4.00% (5% down), 3.10% (10% down), 2.80% (15% down). For an $800K home with 10% down, that's $720K × 3.10% = $22,320 added to your mortgage.
No. Properties priced at $1,500,000 or above are not eligible for CMHC insurance. You must put a minimum of 20% down on homes at or above that threshold. Max amortization for insured mortgages is 25 years (30 years for first-time buyers on new builds as of Dec 2024).
5% on the first $500,000 of the purchase price, plus 10% on the portion between $500,000 and $1,499,999. For a $1M home: $25,000 + $50,000 = $75,000 minimum (7.5%).
Insured mortgages typically receive better interest rates — often 30 to 50 basis points lower — because the lender carries zero default risk. The rate savings can offset the CMHC premium, and you get into the market sooner instead of waiting years to save while prices potentially rise.
No — it protects the lender. You benefit indirectly through lower rates and the ability to purchase with less than 20% down. If you default, you are still responsible for any shortfall after the property is sold.
Sources: CMHC • Canada.ca • Ratehub.ca
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Purchase Price
Vancouver avg: $1.2M
Down Payment
20%Interest Rate
Amortization
Frequency
Monthly Ownership Costs
$250/mo
Your Payment
per month
60%
Principal
Principal
$640,000
Interest
$427,198
Total Monthly
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Should You Save for 20% Down?
Most people think saving for 20% is always smarter. But insured mortgages get a better interest rate — typically 30 to 50 basis points lower. Here's a $1,000,000 property over a 5-year term at your rate of 4.50%.
Insured — 7.5% Down
Uninsured — 20% Down
The 5-Year Verdict
CMHC Premium
$28,675
Extra Interest (5 yrs)
$14,017
Insured Rate Savings (5 yrs)
-$18,574
saved by getting 4.10% vs 4.50%
Cash Kept in Pocket
$125,000
If Invested @ 5% (5 yrs)
+$34,535
Insured costs $42,692 more in CMHC + interest — but the 0.40% rate discount saves $18,574, and your $125,000 invested at 5% earns +$34,535.
Monthly diff: +$639.99/mo
The Hidden Risk of Waiting
Saving another $125,000 takes 1–3 years. Vancouver climbs ~5%/yr — on $1M that's $50K/year in lost equity. Getting in now usually wins.
Example: $1M property, 25-yr amortization, 5-yr term. Insured discount of ~0.40% is a typical market average. Sources: Ratehub.ca • CMHC
Mortgage FAQs
CMHC (Canada Mortgage and Housing Corporation) insurance protects the lender if you default on your mortgage. It's required when your down payment is less than 20% of the purchase price. The premium is added to your mortgage balance.
The premium is a percentage of your mortgage amount based on your loan-to-value ratio: 4.00% (5% down), 3.10% (10% down), 2.80% (15% down). For an $800K home with 10% down, that's $720K × 3.10% = $22,320 added to your mortgage.
No. Properties priced at $1,500,000 or above are not eligible for CMHC insurance. You must put a minimum of 20% down on homes at or above that threshold. Max amortization for insured mortgages is 25 years (30 years for first-time buyers on new builds as of Dec 2024).
5% on the first $500,000 of the purchase price, plus 10% on the portion between $500,000 and $1,499,999. For a $1M home: $25,000 + $50,000 = $75,000 minimum (7.5%).
Insured mortgages typically receive better interest rates — often 30 to 50 basis points lower — because the lender carries zero default risk. The rate savings can offset the CMHC premium, and you get into the market sooner instead of waiting years to save while prices potentially rise.
No — it protects the lender. You benefit indirectly through lower rates and the ability to purchase with less than 20% down. If you default, you are still responsible for any shortfall after the property is sold.
Sources: CMHC • Canada.ca • Ratehub.ca
Free 30-min with Kyle Mark