aka CMHC Fees

For most Canadians the hardest part of buying a home (especially a first home) is saving the necessary down payment.

If you have less than 20% of the purchase price to put down, you will be required to purchase mortgage default insurance through your lender. There are three Mortgage insurance providers in Canada: CMHC, Canada Guaranty and Genworth and one of these providers will provide the insurance coverage to protects your lender against the event the mortgage goes into default.

By providing Mortgage Default Insurance to lenders, CMHC, Canada Guaranty and Genworth enable you to finance up to 95% of a home. This means you can buy a property with as little as 5% down payment. While you may have to pay an extra premium for their services, these mortgage default insurers have made home ownership possible for millions of Canadians who would otherwise have had to wait much longer while saving for the necessary down payment.

The amount of the premium you will pay varies based on the amount of your down payment and amount of your mortgage loan.