Saskatchewan CMHC Insurance
In Canada, home buyers with less than 20% down payment require mortgage default insurance, or CMHC insurance. Mortgage default insurance protects lenders in the event a home buyer defaults. Thanks to this protection, lenders can offer lower mortgage rates for mortgages with lower down payments.
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A guide to Saskatchewan CMHC insurance
Jamie David, Sr. Director of Marketing and Mortgages
Mortgage default insurance premium rates and regulations in Saskatchewan are same the across Canada. The insurance premium rate ranges from 2.80% to 4.00% of your mortgage amount. Additional federal regulations on CMHC insurance also apply:
- CMHC insurance must be purchased for all homes with less than 20% down payment.
- Homes 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 CMHC insured mortgages 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 mortgage default insurance premium is added to your mortgage amount, and is paid off in your monthly mortgage payments over your mortgage’s amortization period.
Saskatchewan Mortgage Default Insurance Rates
Mortgage default insurance rates vary depending on your down payment percentage. Your insurance premium is then calculated using this percentage and your mortgage 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 Saskatchewan:
Let’s say you have bought 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.
Saskatchewan mortgage default insurance rates with a non-traditional down payment
Examples of non-traditional sources of down payment include borrowed funds and gifts from non-immediate family members. Using non-traditional sources will result in a rate increase on your CMHC insurance for down payments from 5% to 9.99%
| 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% |
Saskatchewan mortgage default insurance rates for self-employed, non-verified income
Self-employed home buyers are also charged higher insurance premiums. The minimum down payment required for self-employed home buyers is 10%, and insurance premiums for down payments from 10% - 19.99% are higher than those of 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% |