Canada Mortgage and Housing Corporation

What is CMHC?

The Canada Mortgage and Housing Corporation (CMHC) is a federal Crown corporation that serves as Canada's national housing agency. It provides mortgage loan insurance for homebuyers with less than 20% down payment, conducts housing market research, and supports affordable housing initiatives across Canada.

Why It Matters for Newcomers

If you plan to buy a home in Canada with less than a 20% down payment, you will need CMHC mortgage insurance (or insurance from a similar provider). CMHC also publishes rental market reports, housing start data, and affordability information that can help you make informed housing decisions.

How Mortgage Insurance Works

When you buy a home with a down payment of 5% to 19.99%, your lender requires mortgage default insurance. The insurance premium is based on the size of your down payment relative to the purchase price and is typically added to your mortgage balance. This allows you to buy a home sooner than saving a full 20% down payment.

Quick Tip

CMHC offers a First-Time Home Buyer Incentive and publishes free rental market reports for every city in Canada. Before choosing where to live, check CMHC's rental market data to compare average rents, vacancy rates, and housing availability across different cities and neighborhoods.