Nova Scotia CMHC Insurance

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 $1.5 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.
• As of December 15, 2024, first-time home buyers and those purchasing newly-constructed homes can choose an amortization of up to 30 years. Should they choose to do so while having an insured mortgage, they must add 20 basis points to their default insurance premium.

Nova Scotia mortgage default insurance rates

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

Note: your amortization period must be 25 years or less, or up to 30 years if you are a first-time home buyer, or purchasing a newly-constructed home. 

Those who are eligible for a 30-year amortization while having an insured mortgage must add 20 basis points to their default insurance premium. For example, those who've made a down payment of 5 - 9.99% would have a premium of 4.2%.

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:

• $40,000 (down payment) ÷ $300,000 (home price)
  = 13.33% (down payment percentage)
  
  
• $300,000 (home price) - $40,000 (down payment)
  = $260,000 (mortgage before CMHC)
  
  
• $260,000 (mortgage before CMHC) × 3.10% (CMHC tax rate)
  = $8,060 (CMHC insurance premium)
  
  
• $260,000 (mortgage before CMHC) + $8,060 (CMHC insurance premium)
  = $268,060 (total mortgage)

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.