CMHC Premium: Quebec Tax Rises to 9.975% in 2027

If you are buying with less than 20% down, your mortgage must be insured, and in Quebec this insurance comes with a tax that you pay in cash at the notary's office. That tax goes up on January 1, 2027. Here is what that means in practice, with a reminder of how the mortgage loan insurance premium works.

What changes on January 1, 2027

Announced in the 2025-2026 Quebec budget and confirmed by Revenu Québec on April 9, 2026, the measure raises the rate of the tax on insurance premiums from 9% to 9.975%, the same rate as the QST. The new rate applies to premiums paid after December 31, 2026.

Why does this affect buyers? CMHC indicates that mortgage loan insurance premiums are subject to provincial sales tax in Quebec, Ontario and Saskatchewan. In Quebec, GST and QST do not apply to insurance premiums: it is the tax on insurance premiums, currently 9%, that applies, and mortgage loan insurance is not among the exemptions published by Revenu Québec. If your purchase closes in 2027, plan for the new rate and confirm the exact amount with your lender and your notary.

How the CMHC premium works

Mortgage loan insurance protects the lender (not the buyer) if the borrower fails to repay. It is offered by CMHC and by private insurers. The premium is calculated as a percentage of the loan amount, based on the size of the down payment.

Down payment	Loan-to-value ratio	CMHC premium (on the loan)
5% to 9.99%	90.01% to 95%	4.00%
10% to 14.99%	85.01% to 90%	3.10%
15% to 19.99%	80.01% to 85%	2.80%

The premium can be added to the loan amount. The provincial tax, however, cannot be financed: it is paid in cash at signing at the notary's office.

Minimum down payment and maximum price

• Up to $500,000: minimum down payment of 5%.
• Above $500,000: 5% on the first $500,000 and 10% on the portion above that.
• The purchase price must be under $1,500,000 for an insured loan (cap raised from $1 million to $1.5 million on December 15, 2024).

The 30-year amortization

Since December 15, 2024, the 30-year amortization on an insured loan has been available to all first-time buyers and to all buyers of a newly built home. In return, a surcharge of 0.20% is added to the premium rate when the amortization exceeds 25 years.

Worked example

Let's take a $450,000 purchase with the minimum 5% down payment ($22,500):

• Base loan: $450,000 − $22,500 = $427,500
• CMHC premium at 4.00%: $17,100, added to the loan (total of $444,600)
• Tax at 9% (premium paid in 2026): $1,539, payable at the notary's office
• Tax at 9.975% (premium paid after December 31, 2026): $1,705.73

The difference is about $167 more to set aside in cash. With a 30-year amortization (4.20% premium), the premium would be $17,955 and the tax at 9.975% would be $1,791.01.

To see the effect of the premium on your payments, try my mortgage calculator, which includes the CMHC premium and the Quebec tax.

Should you move up your purchase?

The difference is real, but modest compared with the total cost of a purchase. It is generally not a good enough reason to rush a decision: choosing the right property, your borrowing capacity and interest rates matter far more. The important thing is to include this amount in your cash reserves, along with the welcome tax (see the welcome tax calculator) and notary fees.

In conclusion

If you plan to buy with less than 20% down, a mortgage pre-approval will give you a clear idea of your premium and the amount to set aside for the notary. And if you want to take stock of your purchase plans, I would be happy to discuss them with you: contact me.

Sources: Revenu Québec, April 9, 2026; CMHC, mortgage loan insurance costs; Department of Finance Canada.

Frequently asked questions

Can the tax on the CMHC premium be added to my mortgage?

No. CMHC specifies that the provincial sales tax cannot be added to the loan amount. It is paid in cash, usually at the notary's office. Only the premium itself can be financed.

Which date determines the 9% or 9.975% rate?

Revenu Québec indicates that the 9.975% rate applies to premiums paid after December 31, 2026. If your transaction closes around January 1, 2027, confirm the applicable rate with your lender and your notary.

Do I have to pay a CMHC premium with a 20% down payment?

In general, mortgage loan insurance is mandatory when the down payment is less than 20% of the price. With 20% or more, the loan is usually conventional and this premium does not apply.