What is the exact CMHC premium by LTV?

2024 public schedule: LTV ≤ 65% = 0.60%; 65-75% = 1.70%; 75-80% = 2.40%; 80-85% = 2.80%; 85-90% = 3.10%; 90-95% = 4.00%. So 5% down (95% LTV) = 4.00% premium on the financed principal. Premium is typically capitalized (spread over amortization).

How does the HBP (Home Buyers’ Plan) work in 2026?

HBP lets each person withdraw up to $60,000 ($120,000 per couple) tax-free from RRSP for down payment, to be repaid over 15 years. Ceiling rose from $35k to $60k in 2024.

Can the down payment come from a gift?

Yes — a gift from a direct family member is eligible at most Canadian lenders, with a gift letter confirming no repayment obligation. Gifts typically do not cover closing costs.

What about properties > $1M?

CMHC rule mandates 20% of total price once the property exceeds $1,000,000, with no CMHC insurance available. For a $1.2M property, minimum down is $240,000.

Editorial guide

5%, 10% or 20% down payment? The true hidden cost.

The CMHC premium is rarely scrutinized — yet it transforms an 'affordable 5%' into a noticeably larger total principal. Here are the exact numbers on a $500k home.

1. The CMHC premium, explained

In Canada, when your down payment is under 20% of the purchase price, the loan must be insured by CMHC (or private: Sagen, Canada Guaranty — equivalent schedules). The insurance protects the lender, not you — but you pay the premium.

2024 schedule by LTV (loan-to-value = financed principal ÷ price):

5% down → 95% LTV → 4.00% premium on financed principal
10% down → 90% LTV → 3.10%
15% down → 85% LTV → 2.80%
20% down → 80% LTV → 0% (no insurance)

2. Concrete math on $500k

Assumptions: $500,000 price, 5.5% fixed, 25-year amortization, 5-year term, CMHC premium capitalized.
Metric	5% down	10% down	20% down
Down payment (cash)	$25,000	$50,000	$100,000
CMHC premium capitalized	$19,000	$13,950	$0
Total principal financed	$494,000	$463,950	$400,000
Monthly payment	$3,034	$2,849	$2,456
Interest over 5 years	$129,017	$121,169	$104,467

Reading: moving from 20% to 5% down saves $75,000 cash upfront — but adds $19,000 CMHC premium to the loan and lifts the monthly payment by $577/mo.

3. HBP — underused lever

The Home Buyers’ Plan (HBP) lets each person withdraw up to $60,000 tax-free from RRSP for the down payment, repaid over 15 years. Ceiling raised from $35k to $60k in 2024. Couple can mobilize up to $120,000 — enough to hit 20% on a $500k home and skip CMHC entirely.

4. Verdict by profile

First-time buyer wanting to enter fast

5% — premium amortizes lightly monthly

On $500k, 5% down CMHC premium is roughly $19,000 capitalized, translating to a modest premium-attributable monthly bump. To buy now rather than rent 2 more years, the math often tilts to 5%.

First-time buyer who can wait 6-12 months

10-20% depending on local market

In Montreal/Quebec City where 2026 prices stabilize, waiting to go from 5% to 10% lowers CMHC premium from 4% to 3.1% and reduces monthly PMT. Above 20%, no premium at all.

2nd-home buyer in QC

20% mandatory

No longer first-time. CMHC insurance is generally unavailable for a 2nd home — minimum 20% down, and 20% of total price once it exceeds $1M (CMHC rule).

Rental investor

20% mandatory (owner-not-occupied)

For non-owner-occupied rentals, CMHC is unavailable. Minimum 20% down, often 25% at some lenders for 3-4 unit multifamily.

5. Frequently asked questions

What is the exact CMHC premium by LTV?: 2024 public schedule: LTV ≤ 65% = 0.60%; 65-75% = 1.70%; 75-80% = 2.40%; 80-85% = 2.80%; 85-90% = 3.10%; 90-95% = 4.00%. So 5% down (95% LTV) = 4.00% premium on the financed principal. Premium is typically capitalized (spread over amortization).
How does the HBP (Home Buyers’ Plan) work in 2026?: HBP lets each person withdraw up to $60,000 ($120,000 per couple) tax-free from RRSP for down payment, to be repaid over 15 years. Ceiling rose from $35k to $60k in 2024.
Can the down payment come from a gift?: Yes — a gift from a direct family member is eligible at most Canadian lenders, with a gift letter confirming no repayment obligation. Gifts typically do not cover closing costs.
What about properties > $1M?: CMHC rule mandates 20% of total price once the property exceeds $1,000,000, with no CMHC insurance available. For a $1.2M property, minimum down is $240,000.