Mortgage Insurance in Canada: What Edmonton Buyers Need to Know in 2026
5% down on the first $500K, 10% on the rest up to $1.5M. The 30-year amortization is now open to all first-time buyers and new-build purchases. Here is what the rules actually say.
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Key Takeaways:
- CMHC insurance is required on any purchase with less than 20% down, on homes up to $1.5M
- Down payment minimum: 5% on the first $500,000, 10% on the portion from $500,000 to $1,500,000
- Premium tiers: 4.00% at 5% down, 3.10% at 10-15% down, 2.80% at 15-20% down (CMHC, 2026)
- 30-year amortization now available to all first-time buyers and all buyers of new builds (eff. Dec 15, 2024)
- FHSA + RRSP Home Buyers' Plan can combine for up to $200,000 in tax-advantaged down payment for a couple
- Alberta has no provincial sales tax on the CMHC premium, saving $1,000-$2,000 vs. Ontario buyers
You Pay Insurance When You Put Less Than 20% Down
CMHC mortgage default insurance is required on any home purchase where the buyer puts less than 20% down. It protects the lender. You pay for it by having it added to your mortgage balance.
The premium is a percentage of the mortgage amount, calculated at closing and rolled into the loan:
| Down Payment | Loan-to-Value | Premium Rate |
|---|---|---|
| 5-10% | 90.01% to 95% | 4.00% |
| 10-15% | 85.01% to 90% | 3.10% |
| 15-20% | 80.01% to 85% | 2.80% |
| 20-25% | 75.01% to 80% | 2.40% |
| 25-35% | 65.01% to 75% | 1.70% |
| 35%+ | Up to 65% | 0.60% |
Source: CMHC, current as of 2026. A 0.20% surcharge applies to qualifying borrowers who choose a 30-year amortization (see below).
Edmonton example: On a $478,902 home (Edmonton average, April 2026) with 5% down ($23,945), your insured mortgage is $454,957. The 4.00% premium adds $18,198, making your total mortgage $473,155. At current variable rates around 4.45%, that is roughly $2,600/month on a 25-year amortization. Run your own numbers with our CMHC insurance calculator to see your exact premium and monthly payment at any down payment amount.
No insurance on homes over $1.5M. Minimum 20% down required. This cap was raised from $1M to $1.5M effective December 15, 2024.
Alberta advantage: Ontario, Quebec, Saskatchewan, and Manitoba charge provincial sales tax on the CMHC premium. Alberta does not. That saves you roughly $1,000-$2,000 compared to an equivalent purchase in Toronto.
Eco bonus: CMHC offers up to a 25% refund on the premium for qualifying energy-efficient homes.
The Down Payment Structure Has Two Tiers
This is the rule most buyers get wrong. The minimum down payment is not a flat 5%.
- 5% on the first $500,000 of the purchase price
- 10% on any amount between $500,000 and $1,500,000
On a $700,000 home that works out to: $25,000 (5% of $500K) + $20,000 (10% of $200K) = $45,000 minimum. A flat 5% calculation would give you $35,000 and a lender would decline your mortgage application.
On Edmonton's $478,902 average, the tiered rule does not change the math much (the whole price is under $500K), but buyers looking at $600K+ homes need to plan for this. Our down payment guide for Canada covers every source — FHSA, HBP, gifted funds, and more — with current rules.
30-Year Amortization: Now Open to More Buyers
Effective December 15, 2024, 30-year amortizations became available on insured mortgages for two groups:
- All first-time homebuyers (regardless of property type)
- All buyers of new builds (regardless of whether they are a first-time buyer)
A 0.20% premium surcharge applies to the CMHC premium for both qualifying groups when choosing a 30-year amortization (CMHC). On a $450,000 insured mortgage at the 4.00% tier, that adds $900 to your premium, but reduces your monthly payment by roughly $150-$200 compared to 25 years. Use our mortgage calculator to compare the 25-year and 30-year payments side by side for your purchase price. The math typically favours the lower payment if cash flow is tight in the early years.
Before December 2024, 30-year amortizations were limited to first-time buyers purchasing newly built homes only.
The FHSA: $40,000 Tax-Free Toward Your First Home
The First Home Savings Account (FHSA) is the strongest savings tool available to first-time buyers in Canada:
- Contribute up to $8,000/year, lifetime maximum $40,000
- Contributions are tax-deductible (like an RRSP)
- Growth is tax-free (like a TFSA)
- Withdrawals for a qualifying home purchase are tax-free
- Unused contribution room carries forward one year (max $8,000 carry-forward per year)
This is the only account in Canada that gives you a tax deduction going in and tax-free money coming out. If you plan to buy within five years, open one now and start contributing.
The RRSP Home Buyers' Plan: Up to $60,000 More
The Home Buyers' Plan (HBP) lets you withdraw up to $60,000 per person from your RRSP tax-free toward a home purchase. A couple can pull $120,000. You repay it over 15 years starting the second year after withdrawal. Missed repayments are added to your taxable income for that year.
Combined strategy: A couple using both programs can accumulate up to $80,000 via FHSA plus $120,000 via HBP, totalling $200,000 in tax-advantaged down payment. On Edmonton's $478,902 average, that covers a 41% down payment, eliminating CMHC insurance entirely and saving roughly $15,000 in premiums.
The First-Time Home Buyer Incentive Is Gone
The federal shared-equity mortgage program run through CMHC was cancelled March 21, 2024. It no longer exists. Any article still referencing it is out of date.
What This Looks Like in Edmonton Right Now
Edmonton's average residential sold price was $478,902 in April 2026 (CREA/RAE data). The Bank of Canada's policy rate sits at 2.25%, held steady since October 2025. At these price points:
- 5% down on the average home ($478,902): $23,945 down, $18,198 insurance premium, total insured mortgage $473,155
- 10% down on the average home: $47,890 down, $13,256 insurance premium, total insured mortgage $445,272
- 20% down on the average home: $95,780 down, no insurance, mortgage $383,122
The jump from 10% to 20% down eliminates roughly $13,256 in insurance. If the FHSA and HBP can get you to 20%, run the numbers.
Edmonton Housing Market
See homes in your price range in Edmonton
Read the March 2026 Edmonton market report
See our 2026 Alberta mortgage rate forecast
The Bottom Line: Open an FHSA now if you have not. Contribute $8,000/year and combine it with the RRSP Home Buyers' Plan. A couple can build $200,000 in tax-advantaged down payment, enough for a 41% down on Edmonton's average home with no CMHC insurance. If you are buying with less than 20% down, know your tier: 4.00% at 5% down, 3.10% at 10-15%, 2.80% at 15-20%. And if you qualify for a 30-year amortization, the 0.20% surcharge is usually worth the lower monthly payment.
Frequently Asked Questions
What is the CMHC insurance premium rate for a 5% down payment in Canada? The premium is 4.00% of the total insured mortgage amount, added to your loan at closing. On a $450,000 insured mortgage, that is $18,000 added to your balance. Alberta does not charge provincial sales tax on this premium, which saves buyers $1,000 to $2,000 compared to Ontario or Quebec. The premium drops to 3.10% if you put 10% to 15% down.
What is the maximum purchase price for an insured mortgage in Canada? As of December 15, 2024, the insured mortgage price cap is $1.5 million. Any home priced above $1.5M requires a minimum 20% down payment and does not qualify for CMHC insurance. The cap was raised from $1M, where it had sat since 2012, by the Department of Finance to reflect current home prices in major Canadian cities.
Who qualifies for a 30-year amortization on an insured mortgage? Since December 15, 2024, two groups qualify: all first-time homebuyers (any property type) and all buyers of newly built homes (regardless of whether they are first-time buyers). A 0.20% premium surcharge applies to both groups when choosing the 30-year term (CMHC). The monthly savings over a 25-year amortization are real, but you pay more total interest over the life of the mortgage.
Can I combine the FHSA and the RRSP Home Buyers' Plan? Yes. A first-time buyer can withdraw tax-free from both for the same purchase. A couple can combine up to $40,000 each from the FHSA with up to $60,000 each from the HBP, for a combined maximum of $200,000 in tax-advantaged down payment funds.
Is CMHC insurance tax-deductible? Not for owner-occupied homes. For rental properties, the premium can be deducted over the amortization period of the mortgage. Alberta buyers have an additional advantage: no provincial sales tax on the premium, unlike buyers in Ontario, Quebec, Saskatchewan, and Manitoba.
Premium rates sourced from CMHC. Mortgage reform details from Department of Finance Canada. FHSA and HBP rules from Canada Revenue Agency. Edmonton market data from CREA/RAE, April 2026.
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