CMHC mortgage insurance — also known as mortgage default insurance — is required in Canada when your down payment is less than 20% of the purchase price. It protects the lender in the event of default and is provided through the Canada Mortgage and Housing Corporation (CMHC) or other approved insurers. The insurance premium is calculated as a percentage of your mortgage amount and is typically added directly to your mortgage rather than paid upfront. The premium ranges from 2.80% to 4.00% depending on your down payment amount. If your down payment is 20% or more, mortgage default insurance is not required. Your mortgage professional will walk you through exactly how this applies to your situation.