Use the Mortgage Default Insurance Calculator in ‘New Insured Loan’ Calculation Mode when purchasing a home with a new mortgage when you don’t have 20% down and you are not bringing the mortgage over (porting) from a previous property.

To determine the amount of mortgage default insurance you will need to pay, do the following:

1. Select “New Insured Loan — Premium on Total Loan”

From the Calculation Mode dropdown at the top of the calculator, choose this option.

This tells the calculator to apply the standard premium table (0.60% to 4.00%) based on your loan-to-value ratio.

2. Enter the Property Value

Input the purchase price or appraised value of the home you’re buying.
For example: 600000

3. Enter the Down Payment (in dollars)

Type your down payment amount — not a percentage.
For example: 30000

The calculator automatically displays the percentage down below, so you can see if you meet insured thresholds.

4. Check the % Down Display

You’ll see a small readout like:

“% Down: 5.00%”

The calculator will also display whether your down payment meets the minimum required for insured loans (e.g., 5% for properties up to $500K, and 10% on the portion above $500K up to $1.5M).

If your purchase price is above $1.5 million, the tool will show that insured mortgages are not available — you must make a minimum 20% down payment.

5. (Optional) Check “Non-Traditional Down Payment”

Check this box if your down payment is borrowed, gifted, or builder-assisted rather than from your own savings or equity.
This slightly increases the premium rate if your LTV exceeds 90% (e.g., from 4.00% → 4.50%).

Hover over the tooltip (“?”) for a brief explanation.

6. Select Your Province or Territory

Choose your province from the dropdown.
If you select Ontario, Quebec, or Saskatchewan, the calculator will:

• Apply the provincial sales tax to the insurance premium, and

• Note that this tax cannot be added to the mortgage (it must be paid at closing).

7. Click “Calculate”

You’ll see detailed results in the output panel:

Example

Result:

• LTV: 95%

• Premium Rate: 4.00%

• Premium Amount: $22,800

• Sales Tax (8% ON): $1,824

• Total Mortgage: $622,800 (premium financed)

• Note: “Premium can be added to the mortgage, but sales tax must be paid as a closing cost.”

Summary

Use the New Insured Loan mode when:

• The borrower is purchasing a home with less than 20% down,

• The property value is under $1.5 million, and

• The mortgage is not already insured.

It provides a complete picture of the insurance cost, sales tax, and the final total mortgage amount that will appear on the mortgage commitment.

Use the Mortgage Default Insurance Calculator in ‘Portability/Top Up’ Calculation Mode when you already have an insured mortgage (for example, CMHC, Sagen, or Canada Guaranty coverage) and you are porting it (taking it with you) to a new property.

If you:

• Buy a more expensive home, or

• Need to increase the mortgage amount when moving,

then the existing insurance certificate can often be ported (transferred), but an additional premium is charged on the increase to the loan amount. This ‘additional premium’ is what the Portability Top Up mode calculates.

To calculate the additional premium when porting an insured mortgage, do the following:

1. Select “Portability / Top-Up — Premium on Increase”

From the Calculation Mode dropdown, choose this second option.
This tells the calculator to apply the “Premium on Increase” rate table rather than the standard “Premium on Total Loan” table.

2. Enter the Property Value

Input the purchase price or appraised value of the new home.
Example: 800000

3. Enter the Down Payment

Enter how much you’ll be putting down in cash or equity on the new purchase.

4. Enter the Increase to Loan Amount

This is the difference between:

• The new mortgage amount you need, and

• Your existing insured mortgage balance that’s being ported.

Example:

• Old insured mortgage: $400,000

• New total mortgage: $480,000
  → Increase = $80,000

Type $80000 into the “Increase to Loan Amount ($)” field.

The calculator then applies the portability premium rate only to that $80,000 increase.

5. Optional: Check the Non-Traditional Down Payment Box

If your down payment includes borrowed or gifted funds and your loan-to-value (LTV) is above 90%, check this box.
This raises the top-up premium slightly (for example, 6.30 % → 6.60 %).

6. Choose Your Province

Select your province to include any applicable provincial sales tax on the insurance premium:

• Ontario 8 %

• Quebec 9.975 %

• Saskatchewan 6 %

Remember: the tax portion can’t be financed — it must be paid at closing.

7. Click “Calculate”

The calculator will display:

• Premium Rate: the insurer’s rate for portability top-ups (typically 5.9 – 6.6 %)

• Premium Amount: the dollar premium on the increase only

• Provincial Sales Tax: tax on that premium

• Total Premium Cost: premium + tax

• Total Mortgage: your new financed total (original loan + increase + premium)

Example

Result:

• Premium Rate: 6.30 %

• Premium on Increase: $5,040

• PST (8 %): $403.20 (closing cost)

• Total Mortgage after premium: $805,040

Summary

Use the Portability / Top-Up Increase Mode when you:

• Already have a CMHC/Sagen/Canada Guaranty-insured mortgage,

• Are buying a more expensive home, and

• Need to borrow more than before.

The calculator shows you exactly how much extra premium (and tax, if any) you’ll owe — without re-insuring your entire mortgage amount.

The mortgage calculators provided on this website are for general informational and illustrative purposes only. The results generated are based on user-entered information and standardized assumptions regarding interest rates, amortization periods, debt service ratios, stress test requirements, property taxes, and other inputs.

These tools do not constitute financial advice, mortgage advice, a mortgage approval, or a commitment to lend.

Actual mortgage qualification and terms depend on many factors, including but not limited to:

• Verification of income and employment

• Credit history and credit score

• Existing debt obligations

• Down payment source and documentation

• Property type and location

• Applicable federal and provincial regulations

• Specific lender underwriting policies and guidelines

Lender policies and regulatory requirements may change without notice and may differ between financial institutions. As a result, the outcomes produced by these calculators may not reflect the final mortgage approval amount, interest rate, product structure, or conditions offered by a lender.

For advice tailored to your individual circumstances, please consult with me.

Mortgage services are provided in accordance with applicable provincial legislation, including the Mortgage Brokerages, Lenders and Administrators Act, 2006 (Ontario) and regulated by the Financial Services Regulatory Authority of Ontario (FSRA) where applicable.