Understanding CMHC Insurance: Is It Worth the Cost?

CMHC insurance protects lenders when buyers have a down payment below 20%.

It allows buyers to enter the market with as little as 5% down.

CMHC insurance is mandatory for high-ratio mortgages.

The smaller your down payment, the higher the insurance premium.

Premiums range from 2.8% to 4% of the mortgage amount.

The cost is typically added to your mortgage balance.

Increasing your down payment to 20% avoids mortgage insurance.

Other insurers like Genworth and Canada Guaranty also exist.