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
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.
Down payment (% of home’s price) | 5% - 9.99% | 10% - 14.99% | 15%-19.99% | 20% or higher |
CMHC insurance premium | 4.00% | 3.10% | 2.80% | 0% |
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.
Down payment (% of home’s price) | 5% - 9.99% | 10% - 14.99% | 15%-19.99% | 20% or higher |
CMHC insurance premium | 4.50% | 3.10% | 2.80% | 0% |
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.
Down payment (% of home’s price) | 5% - 9.99% | 10% - 14.99% | 15%-19.99% | 20% or higher |
CMHC insurance premium | N/A | 4.75% | 2.90% | 0% |