Canada Default Insurance Comparison Calculator
Compare CMHC, Sagen, and Canada Guaranty mortgage default insurance side-by-side. Premium rates are identical at each LTV tier — the real differences are in eligibility, lender relationships, and niche programs for self-employed or investor borrowers. Includes provincial PST calculation. All figures in CAD.
All three default insurers use identical LTV premium tiers for standard residential mortgages. The premium rates are regulated and set in coordination with OSFI. The practical difference lies in eligibility criteria, not the premium amount.
| Down Payment Tier | LTV | Premium Rate | CMHC (CA$650,000 home) | Sagen | Canada Guaranty |
|---|---|---|---|---|---|
| 5–9.99% down (95% LTV) | 95% | 4.00% | CA$23,400 | CA$23,400 | CA$23,400 |
| 10–14.99% down (90% LTV) ◀ your tier | 90% | 3.10% | CA$18,135 | CA$18,135 | CA$18,135 |
| 15–19.99% down (85% LTV) | 85% | 2.80% | CA$16,380 | CA$16,380 | CA$16,380 |
| 20%+ down | 80% or less | N/A | Not required | Not required | Not required |
Ontario, Quebec, Manitoba, and Saskatchewan charge provincial sales tax on the mortgage default insurance premium. Unlike the premium itself, this PST cannot be rolled into the mortgage — it is due as cash at closing.
| Insurer | Premium | PST (0%) | Total Due at Closing | Added to Mortgage |
|---|---|---|---|---|
| CMHC | CA$18,135 | CA$0 | CA$0 cash | CA$18,135 |
| Sagen | CA$18,135 | CA$0 | CA$0 cash | CA$18,135 |
| Canada Guaranty | CA$18,135 | CA$0 | CA$0 cash | CA$18,135 |
How to Use This Default Insurance Comparison Calculator
Enter your home purchase price and down payment percentage (between 5% and 19.99%). The calculator shows the identical premium for CMHC, Sagen, and Canada Guaranty at your LTV tier, along with provincial PST where applicable, and the key differences between the three insurers that matter in practice.
When Is Default Insurance Required?
- Down payment of 5% to 19.99% on a property priced up to $1.5 million
- The insurance protects the lender, not the borrower — but you pay the premium
- The premium is added to your mortgage balance and amortized over the loan term
- Provincial sales tax (PST) on the premium must be paid as cash at closing in ON, QC, MB, SK
- Down payments under 5% are not permitted under Canadian mortgage law for federally regulated lenders
The Formula
Premium = Insured Loan × Premium Rate
Premium Rates (same for all three insurers):
• 5–9.99% down (95% LTV): 4.00%
• 10–14.99% down (90% LTV): 3.10%
• 15–19.99% down (85% LTV): 2.80%
Mortgage Balance = Insured Loan + Premium
PST on Premium (ON 8%, QC 9%, MB 7%, SK 6%) = paid in cash at closing
Example: $650,000 home, 10% down ($65,000).
Insured Loan = $585,000 × 3.10% = $18,135 premium.
Mortgage = $603,135. PST in Ontario = $18,135 × 8% = $1,451 cash.
Example
The Patels Buying Their First Home in Mississauga
The Patels are buying a townhouse for $750,000. They have a 10% down payment ($75,000) and are applying in Ontario. Their lender uses CMHC but a broker checks Sagen for their file.
| Purchase Price | $750,000 |
| Down Payment (10%) | $75,000 |
| Insured Loan | $675,000 |
| Premium Rate (90% LTV) | 3.10% |
| CMHC Premium | $20,925 |
| Sagen Premium | $20,925 |
| Canada Guaranty Premium | $20,925 |
| Ontario PST (8%) on Premium | $1,674 cash at closing |
| Total Mortgage Balance | $695,925 |
| Monthly Payment (5.25%, 25yr) | $4,274/mo |
Result: All three insurers would charge exactly the same premium. The broker chose Sagen because the Patels have some self-employed income supplementing their main salary, and Sagen was more flexible on their income documentation.