High-ratio mortgage planning
Estimate the mortgage default-insurance premium, provincial premium tax, total financed mortgage, minimum down payment, eligibility checks, and monthly payment impact.
Calculation inputs
Enter the price, down payment, amortization eligibility, and province. The engine checks minimum down payment, LTV, premium tier, tax, financed premium, and payment impact.
How the calculation works
For prices below $500,000, the standard minimum is 5%. From $500,000 to below $1.5 million, the calculator uses 5% on the first $500,000 and 10% on the balance. At $1.5 million or more, standard high-ratio insurance is unavailable.
The base mortgage is the price less down payment. The engine divides it by the price to determine LTV and selects the applicable homeowner premium tier when LTV exceeds 80%.
When an eligible insured amortization exceeds 25 years, the engine adds the current 0.20 percentage-point premium surcharge.
The insurance premium is added to the mortgage. Provincial sales tax on the premium, where applicable, is calculated separately because it cannot be added to the loan.
Interpret the result
This is the estimated insurance cost paid by the borrower but protecting the lender. It is normally capitalized into the mortgage, increasing principal and payment.
The tax is a cash closing cost. It is not part of the down payment and should be preserved in the closing budget.
The engine checks price, minimum down payment, maximum LTV, and 30-year eligibility. It does not replace insurer underwriting or lender approval.
The difference between payments before and after the premium shows the recurring cost of financing the insurance premium over the selected amortization.
Connected HopeWell knowledge
Use the result alongside HopeWell's guide chapters, glossary definitions, real underwriting case studies, service pages, and related calculators.
Calculation pathway
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Frequently asked questions
For a standard owner-occupied purchase, borrower-paid mortgage default insurance is generally required when the down payment is below 20%, subject to price, property, borrower, and insurer eligibility.
Current standard homeowner tiers include 2.80% for LTV above 80% to 85%, 3.10% above 85% to 90%, and 4.00% above 90% to 95%. Other tiers and programs exist.
The premium is generally added to the mortgage. Applicable provincial sales tax on the premium cannot be added and is paid in cash.
Under the current federal framework, insured 30-year amortization may be available to first-time homebuyers or purchasers of newly built homes, subject to program details and approval.
No. It models CMHC standard homeowner premium assumptions. Sagen, Canada Guaranty, lender policies, portability, premium credits, and specialized programs can differ.