Canadian Insured vs Uninsured Mortgage Calculator
Compare insured (CMHC required, under 20% down) vs uninsured (20%+ down) mortgages side by side. Includes CMHC premium calculation, rate comparison, and the full 5-year and lifetime cost analysis. All figures in CAD.
The rate advantage of insured mortgages is a key counterintuitive feature of the Canadian market. CMHC-backed loans are pooled and securitised — lenders accept lower margins because their risk is eliminated.
| Down Payment | Type | Rate | CMHC Premium | Total Loan | Monthly Payment |
|---|---|---|---|---|---|
| 5% | Insured | 5.00% | CA$26,600 | CA$691,600 | CA$4,022 |
| 10% | Insured | 5.00% | CA$19,530 | CA$649,530 | CA$3,778 |
| 15% | Insured | 5.00% | CA$16,660 | CA$611,660 | CA$3,557 |
| 19.99% | Insured | 5.00% | CA$15,682 | CA$575,752 | CA$3,349 |
| 20% | Uninsured | 5.25% | None | CA$560,000 | CA$3,337 |
| 25% | Uninsured | 5.25% | None | CA$525,000 | CA$3,129 |
Not all lenders offer both insured and uninsured mortgages. Monoline lenders (non-bank lenders) often focus exclusively on insured mortgages due to securitisation rules. Big banks typically offer both.
| Lender Type | Insured Available | Uninsured Available | Notes |
|---|---|---|---|
| Big 5 Banks (RBC, TD, etc.) | Yes | Yes | Full product range, branch network, posted rates often higher |
| Monoline Lenders (MCAP, First National) | Yes | Limited | Often insured-only or restricted uninsured; typically lower rates on insured |
| Credit Unions | Yes | Yes | May offer higher amortizations, flexible underwriting |
| B-Lenders (Home Trust, etc.) | Sometimes | Yes | Higher rates, for borrowers who don't qualify with A-lenders |
| Private Lenders | No | Yes | High rates (8-14%), short terms, asset-based lending |
How to Use This Insured vs Uninsured Calculator
Enter your home price, down payment percentage (5-35%), and estimated interest rates for insured and uninsured mortgages. The calculator shows whether CMHC insurance is required, the premium cost, and total cost comparison between both mortgage types. Rates are in CAD.
Insured vs Uninsured — The Key Difference
In Canada, mortgages with less than 20% down payment require CMHC (or Sagen/Canada Guaranty) mortgage default insurance. Counterintuitively, insured mortgages typically carry lower interest rates than uninsured mortgages — lenders face less risk because the insurance eliminates their exposure to default. The CMHC premium (2.8-4% of the loan) is your cost for access to this lower rate.
CMHC Premium Rates (2024)
The CMHC premium is added to your mortgage principal and amortized over the loan term. Rates: 5-9.99% down = 4.00%, 10-14.99% down = 3.10%, 15-19.99% down = 2.80%. No premium for 20%+ down. The premium is also subject to provincial sales tax in Quebec, Ontario, and Saskatchewan.
Insured vs Uninsured Cost Formula
Total Loan = (Home Price - Down Payment) × (1 + CMHC Rate)
Monthly Payment = based on insured loan at lower insured rate
Uninsured Mortgage:
Total Loan = Home Price - Down Payment (no premium)
Monthly Payment = based on loan amount at higher uninsured rate
Example: $700K home, 10% down ($70K)
Loan: $630,000 | CMHC (3.1%): $19,530
Insured total loan: $649,530 at ~5.0%
Uninsured total loan: $630,000 at ~5.25%
Monthly: insured typically $20-50 higher
But full-term interest savings on insured can offset CMHC premium
Example: 19% vs 20% Down Payment Comparison
Michael — Deciding Between 19% and 20% Down on a $750,000 Home
| Home price | $750,000 |
| 19% down (insured) | $142,500 down | CMHC 2.8% = $17,010 |
| 20% down (uninsured) | $150,000 down | No CMHC premium |
| Insured rate | ~5.00% (lower — CMHC-backed) |
| Uninsured rate | ~5.25% (higher — lender bears risk) |
| Verdict | Over 25 years, insured total cost often lower despite CMHC |
The additional $7,500 needed to reach 20% down may not translate into lower total costs — because the higher uninsured rate applies to the entire amortization. Michael should run both scenarios with his specific rates to determine the true break-even before committing to the extra down payment.