Nova Scotia CMHC Insurance

In Canada, homebuyers with less than 20% down payment are required to purchase mortgage default insurance, or CMHC insurance. Mortgage default insurance protects lenders in the event a home buyer defaults on a mortgage. Thanks to this protection, lenders can offer lower mortgage rates for higher risk mortgages and mortgages with lower down payments

Nova Scotia CMHC Insurance Calculator

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Go  STEP 1 Enter the price of the home you're interested in and press GO. Enter the amount of the mortgage you wish to renew or refinance and press GO.

Down payment	Down payment The amount of money you pay up front to obtain a mortgage. The minimum down payment in Canada is 5%. For down payments of less than 20%, home buyers are required to purchase mortgage default insurance, commonly referred to as CMHC insurance.		Down payment 1 (%)	Down payment 2 (%)	Down payment 3 (%)	Down payment 4 (%)
		minus	Down payment 1 ($)	Down payment 2 ($)	Down payment 3 ($)	Down payment 4 ($)
Amortization period	Amortization period The length of time it will take a homeowner to pay off his/her mortgage. In Canada, the maximum amortization period for insurable mortgages is 25 years. Longer amortization periods allow homeowners to make smaller monthly payments, but equate to more interest paid over the life of the mortgage.		STEP 2 Choose an amortization period. Amortization period 1 Select 5 years 10 years 15 years 20 years 25 years 30 years 35 years	Amortization period 2 Select 5 years 10 years 15 years 20 years 25 years 30 years 35 years	Amortization period 3 Select 5 years 10 years 15 years 20 years 25 years 30 years 35 years	Amortization period 4 Select 5 years 10 years 15 years 20 years 25 years 30 years 35 years
Mortgage insurance	Mortgage insurance Mortgage default insurance, commonly referred to as CMHC insurance, protects the lender in the case the borrower defaults on the mortgage. Mortgage default insurance is required on all mortgages with down payments of less than 20%, which are known as high ratio mortgages. Mortgage default insurance is calculated as a percentage applied to your mortgage amount.	plus
Total Mortgage Required		equals	$-	$-	$-	$-

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CMHC insurance premium rates and regulations in Nova Scotia are the same in the rest of Canada. CMHC insurance premium rates vary from 2.80% to 4.00% of the mortgage amount. Additional federal policies on CMHC insurance also apply:

• CMHC insurance is required on all homes with less than 20% down payment.
• Houses purchased for more than $1 million are not eligible for CMHC insurance, therefore requiring homeowners to put more than 20% down.
• The maximum amortization period on a CMHC insured mortgage is 25 years.
• Homes sold over $500,000 can no longer be purchased with a 5% down payment. The new minimum down payment is 5% of the first $500,000, and 10% of any amount over $500,000.

The CMHC insurance premium is added to your mortgage amount and paid off through monthly payments over your amortization period.

Nova Scotia mortgage default insurance rates

The CMHC insurance rate varies depending on your down payment amount.

The amortization period for CMHC insured homes must be 25 years or lower.

Sample Calculation for CMHC insurance in Nova Scotia:

For a $300,000 home with a $40,000 down payment and an amortization period of 25 years, your insurance premium would be calculated as follows:

You will pay the insurance premium of $8,060 in your monthly payments.

Mortgage default insurance rates with a non-traditional down payment - Nova Scotia

Using non-traditional sources of down payments will incur a rate increase on your insurance premium for down payments from 5% - 9.99%. Non-traditional sources of down payment include borrowed funds and gifts from non-immediate family members.

Mortgage default insurance rates for self-employed, non-verified income - Nova Scotia

Self-employed home buyers without 3rd-party income validation are should be aware of additional regulations. Self-employed home buyers must pay at least 10% down payment and the insurance premiums rates on down payments from 10% - 19.99% are higher than those for regular applicants.