Does CMHC insurance protect me as the borrower?

No. The insurance protects the lender against loss if you default. You still owe the full debt, but the coverage is what allows the lender to approve a low-down-payment mortgage.

When is CMHC insurance required?

It is required whenever your down payment is less than 20% of the purchase price, which makes the mortgage high-ratio. With 20% or more down, you have a conventional mortgage and generally do not need it.

Is CMHC the only mortgage insurer in Canada?

No. CMHC is the government provider, but Sagen and Canada Guaranty are private insurers offering similar coverage. Your lender chooses the insurer, and pricing is broadly comparable.

Mortgage Glossary

What is CMHC (Canada Mortgage and Housing Corporation)?

CMHC is a federal Crown corporation that provides mortgage loan insurance and supports housing programs across Canada. Its insurance protects lenders when a borrower puts down less than 20% of the purchase price, making low-down-payment home ownership possible. CMHC also produces housing research and administers federal housing initiatives.

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Quick answer

Also known as: Canada Mortgage and Housing Corporation, CMHC insurance

Key points

CMHC is a federal Crown corporation and Canada's national housing agency
Its mortgage insurance is required on high-ratio mortgages with under 20% down
Premiums are typically added to the mortgage balance, not paid upfront
Sagen and Canada Guaranty are private alternatives to CMHC insurance
The insurance protects the lender, not the borrower, against default
CMHC also runs housing research and affordable housing programs

CMHC (Canada Mortgage and Housing Corporation) explained

The Canada Mortgage and Housing Corporation (CMHC) is Canada's national housing agency, owned by the federal government. It is best known for mortgage default insurance, which lenders require on high-ratio mortgages where the down payment is below 20%. This insurance covers the lender if the borrower defaults.

CMHC is not the only provider of this insurance in Canada; private insurers Sagen and Canada Guaranty offer comparable coverage. CMHC also funds housing research, market data, and affordable housing programs that shape policy nationwide.

What a CMHC (Canada Mortgage and Housing Corporation) is for

CMHC insurance exists so lenders can safely offer mortgages to buyers with small down payments. Because the insurer absorbs the loss if a borrower defaults, lenders extend financing they might otherwise refuse, opening the door to home ownership for people who have not saved a full 20%.

How it can help you

By backing high-ratio mortgages, CMHC lets first-time and lower-equity buyers enter the market years sooner. The premium is added to the mortgage, so there is no large upfront bill. Lenderoo helps you compare offers across 40+ lenders for free, so you can see how each one prices an insured mortgage before you commit.

When it comes up

A buyer with a 7% down payment uses an insured mortgage to purchase their first condo. CMHC insures the loan, the lender approves it, and the buyer moves in without waiting to save the remaining equity.

Example: A 10% down payment purchase

Priya buys a home for $400,000 with a 10% down payment of $40,000. Because she is putting down less than 20%, her mortgage is high-ratio and requires default insurance.

Her mortgage amount is $360,000. The insurer charges a premium based on her loan-to-value ratio, which is added to the loan rather than paid in cash. This lets Priya buy now while protecting her lender against default.

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Questions & answers

CMHC (Canada Mortgage and Housing Corporation): frequently asked questions

Common questions Canadians ask about cmhc (canada mortgage and housing corporation).

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Related mortgage terms

Mortgage Insurance

Insurance that protects the lender if a borrower defaults on the mortgage.

Read definition

High-Ratio Mortgage

A mortgage with less than 20% down payment requiring insurance.

Read definition

Insured Mortgage

A mortgage with less than 20% down that requires mortgage default insurance.

Read definition

Down Payment

The upfront cash payment made when purchasing a home

Read definition

Conventional Mortgage

A mortgage where the down payment is at least 20% of the purchase price

Read definition

Back to full glossary

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Lenderoo shops 40+ lenders for free and pairs you with a mortgage professional who keeps the jargon simple — and gets you a great rate.

Find my best mortgage Explore the glossary

Mortgage Glossary

What is CMHC (Canada Mortgage and Housing Corporation)?

Find my best mortgage Back to glossary

Quick answer

Also known as: Canada Mortgage and Housing Corporation, CMHC insurance

Key points

CMHC is a federal Crown corporation and Canada's national housing agency
Its mortgage insurance is required on high-ratio mortgages with under 20% down
Premiums are typically added to the mortgage balance, not paid upfront
Sagen and Canada Guaranty are private alternatives to CMHC insurance
The insurance protects the lender, not the borrower, against default
CMHC also runs housing research and affordable housing programs

CMHC (Canada Mortgage and Housing Corporation) explained

What a CMHC (Canada Mortgage and Housing Corporation) is for

How it can help you

When it comes up

Example: A 10% down payment purchase

Priya buys a home for $400,000 with a 10% down payment of $40,000. Because she is putting down less than 20%, her mortgage is high-ratio and requires default insurance.

Have a question about cmhc (canada mortgage and housing corporation)?

Lenderoo shops 40+ lenders for free and matches you with a mortgage professional who explains every term — and finds your best rate.

Get pre-approved free Talk to an expert

Questions & answers

CMHC (Canada Mortgage and Housing Corporation): frequently asked questions

Common questions Canadians ask about cmhc (canada mortgage and housing corporation).

Keep learning

Back to full glossary

Understand your mortgage with confidence

Lenderoo shops 40+ lenders for free and pairs you with a mortgage professional who keeps the jargon simple — and gets you a great rate.

Find my best mortgage Explore the glossary