CMHC Insurance in 2026: What It Costs a Vancouver Buyer, and When It's Worth Paying
On the median asking price of a Vancouver condo today, $799,000, the smallest down payment the rules allow is $54,900. Borrow the other $744,100 and CMHC's premium is 4.00% of the loan: $29,764. Take a 30-year amortization as a first-time buyer and it's $31,252. That's the price of buying with less than 20% down, and almost everyone rolls it into the mortgage and pays interest on it for decades.
The price is the median asking price of active condo listings on EstateBlock (snapshot October 23, 2026), an asking price, not a sale price. The premium rules are CMHC's published schedule. Below: what the premium is, what it costs in each Greater Vancouver city, where the cliffs in the table are, and when I'd pay it rather than keep saving.
Sources: CMHC premium schedule; CMHC Home Start; CMHC minimum down payment; EstateBlock.com live listings, snapshot 2026-10-23 (median asking prices of active listings, not sale prices).
What CMHC insurance is, and who it protects
Put less than 20% down and you need mortgage loan insurance (also called mortgage default insurance). It protects your lender in case you can't make your payments; it doesn't protect you. In exchange, CMHC lets you borrow up to 95% of the price, and it's the reason a 5% or 10% down buyer can get a mortgage at all (CMHC).
The mechanics are simple. The lender pays the premium and, in CMHC's words, "typically" passes it on to you (CMHC). It's a one-time charge (CMHC premium information), a percentage of the loan, and the percentage rises as your down payment shrinks. You can pay it in a lump sum or add it to the mortgage (CMHC). Your lender gives you the exact figure when you apply, so treat every number here as CMHC's published schedule applied to a hypothetical purchase.
One thing BC buyers don't have to budget for: sales tax on the premium. CMHC lists Ontario, Quebec and Saskatchewan as the provinces that charge provincial sales tax on it (and that tax can't be added to the loan). British Columbia isn't on that list (CMHC).
The CMHC premium table for 2026
Loan-to-value (LTV) is the loan divided by the price. A 10% down payment is a 90% LTV. Here's the whole schedule for an owner-occupied home, with the 30-year column that applies to first-time buyers and buyers of new builds under CMHC Home Start.
| LTV | Down payment | Up to 25 yrs | 30 yrs |
|---|---|---|---|
| Up to 65% | 35% or more | 0.60% | n/a |
| 65.01% to 75% | 25% to 34.99% | 1.70% | n/a |
| 75.01% to 80% | 20% to 24.99% | 2.40% | n/a |
| 80.01% to 85% | 15% to 19.99% | 2.80% | 3.00% |
| 85.01% to 90% | 10% to 14.99% | 3.10% | 3.30% |
| 90.01% to 95% | 5% to 9.99% | 4.00% | 4.20% |
| 90.01% to 95%, borrowed down payment | 5% to 9.99% | 4.50% | 4.70% |
Source: CMHC, mortgage loan insurance costs; CMHC Home Start premium schedule. Fetched October 23, 2026.
Three things in that table matter more than the rest. First, the premium applies to the whole loan, not just the part above 80%. Second, the jump from the 85.01–90% tier to the 90.01–95% tier is 0.90 points, the biggest step once you're under 20% down. Third, an amortization beyond 25 years carries a 0.20% surcharge (CMHC), which is exactly the gap between the Home Start column and the standard one. With 20% or more down, a purchase doesn't need insurance.
Minimum down payment and the $1.5 million cap
The minimum down payment in Canada is 5% on a home of $500,000 or less. Above that it's 5% of the first $500,000 plus 10% of the rest. At $1,500,000 or more, mortgage loan insurance isn't available, which means 20% down (CMHC). The cap was $1 million until December 15, 2024, when Ottawa raised it to $1.5 million and opened 30-year insured amortizations to all first-time buyers and all buyers of new builds (Department of Finance). Both rules are in force today on CMHC's Home Start page.
| Home | Median asking | Minimum down | Premium |
|---|---|---|---|
| Vancouver condo | $799,000 | $54,900 | $29,764 |
| Vancouver townhouse | $1,398,872 | $114,887 | $51,359 |
| Burnaby condo | $688,806 | $43,881 | $25,797 |
| Burnaby townhouse | $918,000 | $66,800 | $34,048 |
| Surrey condo | $499,000 | $24,950 | $18,962 |
| Surrey townhouse | $788,200 | $53,820 | $29,375 |
| Coquitlam condo | $631,333 | $38,133 | $23,728 |
| Coquitlam townhouse | $1,090,000 | $84,000 | $40,240 |
| Richmond condo | $687,571 | $43,757 | $25,753 |
| Richmond townhouse | $1,048,042 | $79,804 | $38,730 |
| North Vancouver condo | $793,500 | $54,350 | $29,566 |
| North Vancouver townhouse | $1,298,000 | $104,800 | $47,728 |
| Langley condo | $499,990 | $25,000 | $19,000 |
| Langley townhouse | $836,944 | $58,694 | $31,130 |
Source: EstateBlock.com live listings, snapshot 2026-10-23 (median asking prices of active listings, not sale prices); CMHC premium schedule; CMHC minimum down payment rules. Calculations by Dan Marusin.
Every condo and townhouse median in that table is under $1.5 million, and at the minimum down payment every one of them lands in the top 4.00% tier. Surrey and Langley condos sit right around $500,000 ($499,000 and $499,990 asking), so a plain 5% works there. The Vancouver townhouse median, $1,398,872, is the expensive end of insured buying: $114,887 down and a $51,359 premium.
Detached is a different market. The median asking price of a detached house is above $1.5 million in all seven cities; the lowest is Surrey at $1,599,979, and GVR's detached benchmark (MLS® HPI) for September 2026 was $1,784,700 (GVR). For a typical house, CMHC insurance isn't an option and 20% down is the floor. If that's your target, start with the income you need to buy in Vancouver.
What the premium costs on a condo in each city
Source: EstateBlock.com live listings, snapshot 2026-10-23 (median asking prices of active listings, not sale prices); CMHC premium schedule. Calculations by Dan Marusin.
Show the numbers
| City | Premium |
|---|---|
| Vancouver | $29,764 |
| North Vancouver | $29,566 |
| Burnaby | $25,797 |
| Richmond | $25,753 |
| Coquitlam | $23,728 |
| Langley | $19,000 |
| Surrey | $18,962 |
The range runs from $18,962 on a median Surrey condo to $29,764 in Vancouver. North Vancouver and Vancouver are almost identical because their median condo asking prices are within $6,000 of each other. Burnaby and Richmond medians are both close to $688,000 asking, so the premium there is about $25,800.
Now the more useful view: the same condos with 10% and 15% down.
| City | Min. down | 10% down | 15% down |
|---|---|---|---|
| Vancouver | $29,764 | $22,292 | $19,016 |
| Burnaby | $25,797 | $19,218 | $16,394 |
| Surrey | $18,962 | $13,922 | $11,876 |
| Coquitlam | $23,728 | $17,614 | $15,026 |
| Richmond | $25,753 | $19,183 | $16,364 |
| North Vancouver | $29,566 | $22,139 | $18,885 |
| Langley | $19,000 | $13,950 | $11,900 |
Source: EstateBlock.com live listings, snapshot 2026-10-23 (median asking prices of active listings, not sale prices); CMHC premium schedule. Calculations by Dan Marusin.
The cliffs in the table, and the cheapest dollars you will ever save
Because the rate applies to the whole loan, the premium drops in steps, not smoothly. Take the $799,000 Vancouver condo. Put down $79,000, which is $900 short of 10%, and the LTV is 90.11%: you're in the 4.00% tier and the premium is $28,800. Find the extra $900 and you drop to 3.10% and $22,292. $900 more down saves $6,508 of premium.
That's the extreme case, but every step up the ladder buys a discount. Here's what each extra dollar of down payment saves in premium on that same condo:
Source: EstateBlock.com live listings, snapshot 2026-10-23 (median asking prices of active listings, not sale prices); CMHC premium schedule. Calculations by Dan Marusin.
Show the numbers
| Step | Saved per $1 |
|---|---|
| Minimum to 10% down | 30¢ |
| 10% to 15% down | 8¢ |
| 15% to 20% down | 48¢ |
Going from 15% to 20% is where the money is: $39,950 more cash wipes out a $19,016 premium, 48 cents back on every dollar. The minimum-to-10% step ($25,000 more, saving $7,472) returns 30 cents. The 10% to 15% step is the weak one, 8 cents, because the rate only falls from 3.10% to 2.80%.
My read: if your down payment lands just under 10%, 15% or 20%, close the gap. Gifts from family, an FHSA withdrawal, the timing of a bonus. If you're sitting at 11% or 12%, there's less to gain from stretching to 15%; that cash may be better kept for closing costs and a cushion.
The real cost: premium plus the interest on it
Almost nobody pays the premium in cash, so it becomes part of the mortgage. On the Vancouver condo with 10% down, the $22,292 premium added to a 25-year mortgage at 4.05% (the Bank of Canada's July 2026 average for new insured fixed loans of five years and over, series V122667780) adds $118 a month to the payment. Over the full 25 years that premium costs $13,068 in interest, $4,203 of it in the first five years. All in: about $35,360, assuming 4.05% for all 25 years, which is a simplification since the rate resets at every renewal.
That isn't the whole story, though. Insured mortgages have been cheaper to borrow on average. In July 2026 the average new insured five-years-and-over fixed rate was 4.05%; the uninsured average was 4.49% (series V122667786). CMHC itself argues that for "the vast majority of borrowers" the premium is more than offset by those savings (CMHC). Here's how that looks side by side on the same condo, held at the same price.
| 10% down | 20% down | |
|---|---|---|
| Down payment | $79,900 | $159,800 |
| Premium (on the loan) | $22,292 | $0 |
| Mortgage | $741,392 | $639,200 |
| Rate (Jul 2026 avg) | 4.05% | 4.49% |
| Monthly payment | $3,920 | $3,534 |
| Interest, years 1-5 | $139,779 | $133,956 |
| Balance at year 5 | $645,972 | $561,102 |
Source: Bank of Canada V122667780 and V122667786 (July 2026 averages, not quotes); CMHC premium schedule; EstateBlock.com live listings, snapshot 2026-10-23 (median asking prices of active listings, not sale prices). Calculations by Dan Marusin.
The insured buyer borrows $102,192 more, yet pays only $5,823 more interest over five years, because of the lower average rate. At the insured rate, the 20%-down mortgage would cost $3,380 a month instead of $3,534; that $155 difference is the rate gap at work. The insured buyer also keeps $79,900 of cash. What the insured buyer gives up is equity: after five years they owe $84,870 more.
Two cautions. These are averages of loans actually advanced, not quotes, and your rate depends on your file, the lender and the day. And the gap between insured and uninsured averages moves around; it isn't a law of nature. Ask your lender or mortgage broker to price both versions of your own purchase before you decide.
The 30-year option costs 0.20 points more
First-time buyers and buyers of a newly built home can take a 30-year insured amortization through CMHC Home Start, at a premium 0.20 points higher than the 25-year schedule (CMHC Home Start). CMHC counts you as a first-time buyer if you've never bought a home in Canada, or if you haven't lived in a home that you or your current spouse owned in this calendar year or the previous four (there's also a rule for recent separations). For a condo, "newly built" means never occupied, apart from interim occupancy before the strata plan is registered.
On the Vancouver condo at minimum down, the extra 0.20 points is $1,488 of premium. With the premium added to the loan at 4.05%, the monthly payment falls from $4,092 on 25 years to $3,709 on 30, a $383 difference. Total interest over the full amortization rises from $453,641 to $559,857. Lower payments also help you qualify: the stress test runs your payment at the higher of your rate plus 2 points or 5.25%, so a smaller payment means less income needed (how the stress test works).
Source: CMHC Home Start; Bank of Canada V122667780; EstateBlock.com live listings, snapshot 2026-10-23 (median asking prices of active listings, not sale prices). Calculations by Dan Marusin.
Show the numbers
| Monthly payment | |
|---|---|
| 25 years | $4,092 |
| 30 years | $3,709 |
My read: the 30-year option is cheap insurance for your monthly budget and expensive over the long run. If you take it, make lump-sum prepayments when you can, because the extra interest comes from five more years of payments on a balance that shrinks slowly.
Pay the premium or wait until you have 20%?
On the Vancouver condo, the gap between the minimum down payment and 20% is $104,900. One person putting the maximum $8,000 a year into a First Home Savings Account would hit the $40,000 lifetime limit (CRA) after 5 years, well short of the $104,900 gap. Two buyers can each use their own FHSA for the same home (CRA), but even two full accounts, $80,000, don't cover the gap without growth or other savings. More on the account in my FHSA rules post.
Meanwhile the premium you'd avoid is $29,764. Waiting years to dodge it only makes sense if something else is also true: you're happy where you're renting, you don't yet know where you want to live, or your income is about to change. Prices move both ways while you save. GVR's apartment benchmark was $682,500 in September 2026, 6.2% lower than a year earlier (GVR). That's the last 12 months, not a prediction for the next 12.
Here's how I'd think about it:
- Close to a tier? Get to 10%, 15% or 20% before you write the offer. That's where a small amount of cash saves the most premium.
- Far from 20% and ready to own? Pay the premium. Spending years saving for a condo to avoid a 4% charge only works if prices and rents cooperate, and nobody can promise you that.
- Buying above $1.5 million? There's no insured option. Plan for 20% plus closing costs.
- Short on closing costs? Don't drain them to reach a tier. The premium can go on the mortgage; property transfer tax and legal fees can't.
The fine print: rebates, portability, borrowed down payments
The "CMHC rebate". CMHC's Eco products offer up to a 25% partial refund of the premium when you buy or build an energy-efficient home or make energy-efficient improvements (CMHC). On a $29,764 premium, 25% would be $7,441. Ask about it if you're buying new construction.
Portability. If you sell and buy again with a CMHC-insured loan, a premium credit can reduce the new premium. For example, CMHC lists a credit of 100% of the premium paid at 6 months from the original closing, 50% at 12 months and 25% at 24 months. Surcharges can apply (CMHC).
Borrowed down payment. A non-traditional down payment, such as an unsecured loan or line of credit, is allowed only for 90.01% to 95% LTV with a strong credit history, at 4.50% (4.70% on 30 years), and not for non-permanent residents (CMHC). Remember that loan payment also counts in your debt ratios.
Who qualifies. Canadian citizens, permanent residents, and non-permanent residents authorized to work in Canada (homeowner loans only; CMHC Home Start), with debt ratios of at most 39% (GDS) and 44% (TDS) calculated at the qualifying rate. CMHC counts the premium in the loan when it runs those ratios (CMHC). The Home Start page also sets a minimum credit score of 600 for at least one borrower (CMHC Home Start).
To run your own numbers, use the CMHC insurance calculator and the mortgage affordability calculator; the first-time home buyer guide walks through the rest of the process. EstateBlock's guide to first-time home buyer programs in BC covers the rebates and exemptions, and you can browse Vancouver condos or Surrey condos for sale.
FAQ
How much is CMHC insurance?
CMHC's premium is a percentage of the loan: 4.00% with less than 10% down, 3.10% with 10% to 14.99% down, and 2.80% with 15% to 19.99% down, for amortizations up to 25 years. A 30-year amortization through CMHC Home Start adds 0.20 points. With 20% or more down, insurance isn't required.
Is there PST on CMHC insurance in BC?
CMHC lists Ontario, Quebec and Saskatchewan as the provinces that charge provincial sales tax on the premium. British Columbia is not on that list.
Can I add the CMHC premium to my mortgage?
Yes. CMHC says the premium is a one-time charge you can pay in a lump sum or add to the mortgage. If you add it, you pay interest on it over the amortization.
What is the maximum price for an insured mortgage?
Mortgage loan insurance isn't available on a home costing $1,500,000 or more. The cap was raised from $1 million to $1.5 million on December 15, 2024.
What is the minimum down payment in Canada?
5% on a home of $500,000 or less; 5% of the first $500,000 plus 10% of the rest up to $1,499,999; 20% at $1,500,000 or more.
Sources
- CMHC: Mortgage loan insurance costs (premium schedule, PST provinces)
- CMHC: Mortgage loan insurance premiums for homeowner and small rental loans (surcharge, portability, Eco refund)
- CMHC: What is mortgage loan insurance (minimum down payment, $1.5M limit, non-traditional down payments)
- CMHC: Home Start (30-year amortization, first-time buyer definition, premiums, eligibility)
- CMHC: Calculating GDS / TDS
- Department of Finance Canada: mortgage reforms effective December 15, 2024 (September 16, 2024)
- Bank of Canada: new insured mortgages, fixed rate 5 years and over, V122667780
- Bank of Canada: new uninsured mortgages, fixed rate 5 years and over, V122667786
- CRA: Contributing to your FHSA
- CRA: FHSA definitions (lifetime limit)
- CRA: Withdrawals from your FHSAs
- Greater Vancouver Realtors: Stats package, September 2026
- EstateBlock.com: live listings, snapshot October 23, 2026 (asking prices of active listings)
Dan Marusin PREC, REALTOR® · Renanza Realty Inc., 777 Hornby St, Suite 600, Vancouver, BC. This article is general information, not legal, tax or financial advice.