CMHC Rules for 2027: Insured Mortgages, 30-Year Amortization and the $1.5M Cap

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — Every CMHC rule for 2027 in one place: the $1.5M cap, 30-year amortization, premiums, suite refinancing and what Budget 2026 proposes.

This guide is for GTA buyers who plan to put less than 20% down in 2027, and for owners thinking about adding a suite, who want the CMHC rules in one place. You will get every rule that applies today, what Budget 2026 proposes to change, and what the $1.5 million cap means for real GTA prices, as of November 2026.

What are the CMHC rules for 2027?

CMHC is the federal housing agency that insures mortgages when a buyer puts down less than 20%. The insurance protects the lender, not you, and you pay for it through a premium. Private insurers offer the same product under federal rules, so these limits apply whichever insurer your lender uses. Here is where the rules stand going into 2027.

Source: CMHC Purchase and CMHC Home Start pages; Department of Finance Canada (September and October 2024); Budget 2026, Chapter 3. Rules as of 10 November 2026.

What is the $1.5 million cap on insured mortgages?

To get an insured mortgage, the purchase price must be below $1.5 million. The cap used to be $1 million, a figure the Department of Finance says had not changed since 2012, until it was raised on 15 December 2024. It is a fixed dollar amount, so it stays at $1.5 million until Ottawa changes it.

The cap creates a sharp cliff. Below it, you can buy with the minimum down payment. At $1.5 million or more, insurance is not available and you need 20% down.

Source: CMHC minimum equity rules and premium schedule; Ontario retail sales tax on insurance premiums (8%); my calculations.

A $1,000 difference in price means $175,100 more cash up front. If you are shopping near the line, the cap matters more than almost any other rule. My guide to what $1.5 million buys looks at the homes sitting right on it.

Which GTA homes fall under the $1.5 million cap?

Most of them. Using median detached sold prices from TRREB MLS data via REALM for January to October 2026, here is what a buyer with the minimum down payment would need in several GTA markets.

Source: TRREB MLS data via REALM, January–October 2026 (municipal and district medians, not neighbourhood prices); CMHC minimum equity and premium rates; my calculations.

Detached medians fell in most of these markets in 2026, which pulled more homes under the cap. Vaughan’s median fell 5.0% and Richmond Hill’s 8.9% against the same period of 2025. Half of all sales sit above any median, so in Oakville and much of central Toronto, many detached buyers still need 20% down.

Who can get a 30-year insured mortgage in 2027?

Under CMHC’s Home Start rules, an insured mortgage can run 30 years if at least one borrower is a first-time buyer or the home is newly built and never lived in. CMHC counts you as a first-time buyer if, at closing:

• you have never bought a home in Canada, or
• in the current year and the four calendar years before it, you did not live in a home you or your current spouse or partner owned, or
• you have lived apart from a spouse or partner for at least 90 days after a breakdown that began in that same window.

A new condo still counts as newly built if the only person who lived there was you, during interim occupancy. The cost of the extra five years is a higher premium, shown below. For the full trade-off, see my guide to 30-year mortgages in Ontario.

How much is the CMHC premium in 2027?

The premium is a one-time charge, calculated on the loan, and usually added to the mortgage. CMHC’s current schedule is below.

Source: CMHC Purchase and CMHC Home Start premium schedules, owner-occupied 1–4 units, as of November 2026.

In Ontario, the premium is also subject to provincial sales tax. CMHC says that tax cannot be added to the loan, and Ontario’s rate on insurance premiums is 8%, so it is paid in cash at closing. On a $45,100 premium, that is $3,608. My guide to what CMHC insurance costs in Ontario has more worked examples.

What do you need to qualify for CMHC insurance?

• Who can apply: Canadian citizens, permanent residents, and non-permanent residents legally authorized to work in Canada. A purchase must also not be barred by the federal foreign buyer ban, which is a separate law. See my piece on what the foreign buyer ban catches.
• Occupancy: you, or a close relative living there rent-free, must occupy the home. One- to four-unit homes qualify if one unit is owner-occupied.
• Down payment: one- and two-unit homes can be financed up to 95% of value; three- and four-unit homes up to 90%, so you need 10% down on those.
• Source of funds: savings, the sale of a property, or a non-repayable gift from a relative. A borrowed down payment is allowed only on one- or two-unit homes at the highest tier, for borrowers with strong credit, at a higher premium.
• Credit and debt: a 600 credit score for at least one borrower, and GDS and TDS within 39% and 44% at the qualifying rate. The qualifying rate is the greater of your contract rate plus 2 points or 5.25%.

Can you use CMHC insurance to add a secondary suite?

Yes. Since 15 January 2025, homeowners can refinance with mortgage insurance to build extra units, such as a basement apartment or a laneway or garden suite. The federal rules allow:

• borrowing up to 90% of the home’s value after the work is done, including the value the new unit adds;
• an as-improved value under $2 million;
• an amortization of up to 30 years;
• up to four units in total, including the existing home.

You must already own the home, you or a close relative must live in it, and the new units cannot be short-term rentals. The extra financing cannot be more than the project cost. If you are weighing a suite in Toronto, my guide to laneway suite costs and rules covers the city side.

What mortgage insurance changes are coming in 2027?

Changes with a start date

Budget 2026, tabled in early November 2026, says new mortgage insurance flexibilities for three- and four-unit homes, and permission for private insurers to insure five- to fifty-unit buildings, take effect on 1 February 2027. The budget’s own example: a builder of a new $3 million fourplex could get an insured loan for up to 90% of the value, with no maximum property value, no requirement to live in a unit, and up to 30 years once it is built. The Department of Finance has published a technical backgrounder with the details.

Changes that are only proposed

• Optional insurance on 20%-down mortgages. Lenders can choose to insure some mortgages where the buyer has 20% or more down, often called insurable mortgages. Budget 2026 proposes raising the price limit for this optional insurance from $1 million to $1.5 million, and allowing 30 years when a borrower is a first-time buyer or the home is new. Lenders tend to price insurable mortgages a little better than uninsured ones.
• Rate information. New regulations so the Bank of Canada publishes more information on insured mortgage rates.
• Income checks. A CRA income verification service for lenders and insurers, with a pilot funded from 2027–28.
• Prepayment penalties. A consultation on making penalties for insured mortgages easier to understand and compare.

None of the proposed changes is law as of 10 November 2026, and no start dates were given. Do not plan a 2027 purchase around them until the rules are published.

Should you use an insured mortgage or put 20% down in 2027?

Insured mortgages usually get the lowest rates because the lender carries less risk. The lowest insured five-year fixed rate listed on Ratehub on 10 November 2026 was 4.44%. Against that, you pay the premium, interest on the premium, and the 8% tax in cash.

What to do next

1. Check whether your target price is under $1.5 million, with room for competition.
2. Work out your minimum down payment and which premium tier you fall in.
3. Confirm whether you qualify as a first-time buyer for a 30-year amortization, using your exact ownership dates.
4. Budget the 8% Ontario tax on the premium in your closing cash, along with the other closing costs.
5. Speak with a licensed mortgage professional before you make an offer. This article is general information, not financial advice.

Frequently asked questions

Sources

• CMHC — CMHC Purchase: eligibility, LTV and premium schedule
• CMHC — CMHC Home Start: 30-year amortization and first-time buyer definition
• CMHC — Mortgage loan insurance cost (premiums and provincial sales tax)
• Department of Finance Canada — Mortgage reforms, September 2024
• Department of Finance Canada — Mortgage insurance rule changes for secondary suites
• Budget 2026 — Chapter 3 (housing and mortgage measures)
• Ontario — Retail sales tax on insurance and benefits plans
• Ratehub — Best 5-year fixed mortgage rates and insured vs insurable explained (accessed 10 November 2026)

Related reading

• The Bank of Canada Raised Rates: What It Means for GTA Buyers, Sellers and Owners
• Variable-Rate Mortgage After the Hike: How Much Your Payment Changes
• Should I Lock In My Variable Mortgage Before 2027?
• Mortgage Renewal in 2027 After the Rate Hike: Your Options in Ontario