Effective June 1st, 2015, the mortgage loan insurance premium for homebuyers with less than a 10% down payment will increase by approximately 15%.

CMHC Quick Reference — Mortgage Loan Insurance

You can work with confidence, knowing that you are supported by an experienced and informed mortgage loan insurance provider in the Canadian housing market. CMHC provides you with support, expertise, and the tools you need to effectively meet the needs of an evolving industry, helping you focus your time on serving your clients and managing your business.

Working with CMHC provides you with the following benefits:

  • Products and services available coast-to-coast-to-coast.
  • Ready access to local CMHC experts on mortgage loan insurance and much more.
  • Every deal is considered on its own merit. No auto declined applications.
  • Flexibilities for energy-efficient homes.
  • Objective, reliable Canadian housing information.
  • Help to increase your value as a trusted advisor to your clients.

Everything You Need to Open New Doors.

This table provides an overview of CMHC's common homeowner mortgage loan insurance products.

Download the PDF version.

 
Loan Purpose
Purchase
Loan to Value (LTV) Ratio
Up to 95% for 1 – 2 Units
Up to 90% for 3 – 4 Units
Maximum Purchase Price
Maximum purchase price or as-improved property value must be below $1,000,000.
Down Payment Requirement*
Traditional Sources
Number of Units**
1 – 4
Maximum Amortization
25 Years
Borrower Eligibility***
Permanent Residents and Newcomers to Canada.
Non-Permanent Residents are limited to 1 owner occupied unit only – max 90% LTV
General Guideline for History of Managing Credit (Credit Score)
LTV 60.01% to 80%: 580 Required
LTV > 80%: 600 Recommended
Standard VRM: LTV 90.01% to 95%: 610 Recommended
Debt Service Guideline*****
<680: 35% / 42%
680+: 39% / 44%
Loan Security
1st Mortgage and Chattel Mortgage
Interest Rate Types (Fixed, Standard, Capped or Adjustable)****
All
CMHC Portability
Yes
CMHC Green Home
10% premium refund, and a premium refund for a longer amortization period (if applicable).
CMHC Improvement
Single or progress advances (up to 4 advances at no cost)
Loan Purpose
Purchase
Loan to Value (LTV) Ratio
90.01% to 95%
Maximum Purchase Price
Maximum purchase price or as-improved property value must be below $1,000,000.
Down Payment Requirement*
Non-Traditional Sources
Number of Units**
1 – 2
Maximum Amortization
25 Years
Borrower Eligibility***
Permanent Residents and Newcomers to Canada
General Guideline for History of Managing Credit (Credit Score)
650: Recommended
Debt Service Guideline*****
< 680: 35% / 42%
680+: 39% / 44%
Loan Security
1st Mortgage Only
Interest Rate Types (Fixed, Standard, Capped or Adjustable)****
All
CMHC Portability
Yes
CMHC Green Home
10% premium refund, and a premium refund for a longer amortization period (if applicable).
CMHC Improvement
Single or progress advances (up to 4 advances at no cost)
Loan Purpose
Refinance
Loan to Value (LTV) Ratio
Up to 80% for 1 – 4 units
Maximum Lending Value
Maximum lending value must be below $1,000,000
Refinance Amount (New Funds)
Up to $200,000
Down Payment Requirement*
Not Applicable
Number of Units**
1 – 4
Maximum Amortization
25 Years
Borrower Eligibility***
Permanent Residents and Newcomers to Canada
General Guideline for History of Managing Credit (Credit Score)
LTV ≤ 60%: No minimum score required
LTV 60.01% – 80%: Minimum score of 580
Debt Service Guideline*****
< 680: 35% / 42%
680+: 39% / 44%
Loan Security
1st or 2nd Mortgage, Chattel Mortgage
Interest Rate Types (Fixed, Standard, Capped or Adjustable)****
All
CMHC Portability
Not Applicable
CMHC Green Home
10% premium refund, and a premium refund for a longer amortization period (if applicable).
Refinance for improvements only.
CMHC Improvement
Single or progress advances (up to 4 advances at no cost)
 

*Down Payment RequirementsTraditional sources of down payment include: Applicant's savings, RRSP withdrawal, funds borrowed against proven assets, sweat equity (<50% of min. required equity), land unencumbered, proceeds from sale of another property, non-repayable gift from immediate relative, equity grant (non-repayable grant from federal, provincial or municipal agency).
Non-traditional sources of down payment include: Any source that is arm's length to and not tied to the purchase or sale of the property, such as borrowed funds, gifts and 100% sweat equity.

**Property — For Homeowner Mortgage Loan Insurance, the property can be located anywhere in Canada and must be suitable for, and available for, year round occupancy. At initiation, the home or one unit of the property that secures a CMHC-insured mortgage must be intended for occupancy at some point during the year by a borrower or relative of the borrower on a rent free basis. CMHC homeowner mortgage loan insurance is available to a maximum of one property (1 – 4 units) per borrower/co-borrower at any given time.

***Borrower Eligibility — Permanent residents of Canada include Canadian citizens as well as immigrants that intend to remain permanently in Canada. For borrowers without a Canadian credit history, where the LTV is > 80%, CMHC considers alternative sources of information to validate ability and willingness to repay debts. Newcomer to Canada is a permanent resident to Canada but with no established Canadian credit history. Non-permanent resident is a foreign worker with a valid Canadian Work Permit.

Self-Employed borrowers with traditional income validation — eligible for all CMHC products. To establish income: 2 year average of total income on NOA grossed up by 15% or add eligible expenses to net income.

****The qualifying interest rate used to assess borrower eligibility for all variable rate mortgages regardless of the term, and fixed rate mortgages with a term less than five years, will be the greater of the contractual mortgage interest rate or the five-year benchmark interest rate1. For fixed rate mortgages of 5 years or more, the qualifying interest rate is the contract interest rate.

Mortgages with Multiple Interest Rates (e.g. Multi-Component): Each component must be qualified using the applicable criteria defined above.

*****Debt Service Guideline — Debt service flexibilities are based on an assessment of the strength of the overall application. Satisfying the minimum credit score alone does not automatically entitle the borrower to debt service flexibilities.

Closing Costs — For purchase and refinance transactions, borrowers need to demonstrate the financial capacity to cover closing costs. In cases where the closing costs are paid by the borrower in cash, the Approved Lender should confirm this and document the file accordingly. If closing costs are to be borrowed, the loan payment should be included in the Total Debt Service ratio calculation.

For more information about CMHC’s products, contact your Account Manager, Client Relations or call 1-888 GO emili (463-6454).

1Visit www.cmhc.ca and search key word benchmark rate for more information.

Product Selector
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