How Much Does CMHC Mortgage Loan Lender Insurance Cost You? 

The first thing you must know about CMHC insurance is that it for the benefit of the bank not you. It should be renamed CMHC Mortgage Lender Insurance - I repeat it is not for your benefit - it only helps the bank if you do not or cannot pay the mortgage. You do pay the fee for the bank to have the benefit though. 

Bank and other lenders pay the insurance fee and pass the cost on to you.
It will be added to your mortgage.

CMHC Mortgage Loan Insurance Fees are calculated as a percentage of the loan and is based on the size of your down payment.

The less you put in as a down payment - the higher the fee that gets added to your mortgage.

Down Payment	Premium on Total Loan		Premium on Increase to Loan Amount for Portability and Refinance
	Standard Premium	Self-Employed without 3rd Party Income Validation	Standard Premium	Self-Employed without 3rd Party Income Validation**
35%	0.50%	0.80%	0.50%	1.50%
25%	0.65%	1.00%	2.25%	2.60%
20%	1.00%	1.64%	2.75%	3.85%
15%	1.75%	2.90%	3.50%*	5.50%*
10%	2.00%	4.75%	4.25%*	7.00%*
5%	2.75%	N/A	4.25%*	*
90.01% to 95% — Non-Traditional Down Payment***	2.90%	N/A	*	N/A
Extended Amortization Surcharges Add 0.20% for every 5 years of amortization beyond the 25 year mortgage amortization period (for Loan To Value ≤ 80%).

For portability and refinance, the premium is the lesser of Premium on Increase to Loan Amount or the Premium on Total Loan Amount. In the case of portability, a premium credit may be available under certain conditions.

* Premiums shown with an “*” do not apply for refinance. For portability the maximum LTV ratio is 90%, but CMHC may consider higher LTV ratios when the new ratio is equal to or less than the original LTV. For portability, the premium is higher for non-traditional down payments on Increase to Loan Amount.

** For conversion from Self-Employed with traditional 3rd party income validation to Self Employed without traditional 3rd party income validation, the premium is the lesser of: a) the Premium on Total Loan Amount or; b) the outstanding balance multiplied by a 1.5% premium plus the Premium on Increase to Loan Amount.

*** Down Payment Requirements — Traditional sources of down payment include:
Applicant’s savings, RRSP withdrawal, funds borrowed against proven assets, sweat equity (<50% of min. required equity), land unencumbered, proceeds from sale of another property, non-repayable gift from immediate relative.
Non-traditional sources of down payment include:
Any source that is arm’s length to and not tied to the purchase or sale of the property, such as borrowed funds, gifts, 100% sweat equity, lender cash back incentives.

Talk to a Calgary Mortgage Professional for more information