How to Qualify for a CMHC Mortgage

Introduction

Qualifying for a CMHC-insured mortgage allows buyers to purchase a home with as little as a 5% down payment, as long as the purchase price is below $1.5 million and other qualification requirements are met. This guide breaks down who’s eligible, what lenders look for, and how to improve the chances of approval for CMHC mortgage insurance.

1. Minimum Down Payment Requirements

For homes up to $500,000: Minimum down payment is 5% of the purchase price.
For homes between $500,000 and $1,499,999: 5% on the first $500,000 and 10% on the remainder.
Homes worth $1.5 million or more are not eligible for CMHC insurance, and require a 20% down payment.

Check out the CMHC Mortgage Insurance Calculator to see how your down payment affects premiums.

2. Acceptable Down Payment Sources

Traditional sources: Personal savings, RRSP withdrawals (Home Buyers’ Plan), proceeds from property sales, or non-repayable gifts from immediate relatives.
Non-traditional sources: In select cases, unsecured loans or lines of credit (for strong-credit borrowers purchasing certain property types).
Down payments cannot be borrowed when applying through most mainstream lenders and must be verifiable, not linked to the property transaction itself.

Learn more about acceptable down payments and verification.

3. Income & Debt Service Ratio Limits

Lenders calculate two debt service ratios to assess affordability:

Gross Debt Service (GDS) ratio: Monthly housing costs (mortgage principal/interest, taxes, heat, 50% condo fees) must be no more than 39% of gross monthly household income.
Total Debt Service (TDS) ratio: Housing costs plus all other debt repayments (credit cards, car loans, etc.) must stay under 44% of gross income.

Use our affordability calculator for a custom estimate.

4. Minimum Credit Score

At least one borrower must have a minimum credit score of 600 (recently reduced from 680).
Stronger credit scores improve approval chances and may qualify the buyer for the best mortgage rates.

Explore ways to improve your credit and maximize approval odds.

5. Employment & Documentation

Stable, documented income is required—usually a two-year employment history in the same role or industry.
Lenders may request letters of employment, pay stubs, T4s, tax returns, and account statements to prove sources of down payment.

For step-by-step instructions, see the CMHC application process.

6. Mortgage Stress Test

All CMHC-insured mortgage applicants must pass a “stress test,” proving they could afford payments at the greater of 5.25% or their contract rate plus 2%.
This applies even if the offered mortgage rate is lower.

FAQs about the stress test and qualification rules here.

7. Property Eligibility

Must be owner-occupied (not an investment or rental property, except some small rental programs).
Value capped below $1.5 million.
New builds and first-time buyers may qualify for 30-year amortizations (otherwise 25-year max).

See more property details in our first-time buyer’s guide.

8. Other Important Rules

Only one CMHC-insured mortgage per borrower at a time (not for second homes).
Not available to non-permanent residents under most programs; special rules may apply.
CMHC does not offer insurance on homes partially used for business purposes, certain vacation homes, or properties in poor condition.

Compare CMHC to other insurance options.

Quick Qualification Checklist

Home price less than $1.5 million
Minimum down payment as required
Down payment from accepted sources
GDS and TDS below allowed maximums
Credit score 600+
Pass the mortgage stress test
Owner-occupancy
Proper documentation provided