Under 20% down, Canadian mortgages carry default insurance. Enter the price and down payment to see the premium band, what gets added to the mortgage, and the PST an Ontario buyer pays in cash at closing.
Estimate only — not financial, legal or tax advice. Figures depend on your actual rates, terms and local costs.
The premium is a percentage of the mortgage, set by the down payment: 4.00% under 10% down, 3.10% from 10%, and 2.80% from 15%. At 20% down insurance is no longer required. The premium itself is normally added to the mortgage rather than paid up front.
Since late 2024, insured mortgages are available up to a $1.5M purchase price, with the minimum down payment at 5% of the first $500,000 plus 10% of the remainder. Above $1.5M, 20% down is required and insurance doesn’t apply.
Ontario charges 8% provincial sales tax on the insurance premium — and unlike the premium, the PST can’t be added to the mortgage. It’s cash on closing day, which is why it appears in every honest closing-cost estimate.
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