A CMHC insurance premium refund in Canada is possible, but not for the reason most homeowners hope. If you put less than 20% down, you paid a mortgage default insurance premium of up to 4% of your loan, usually added to your mortgage balance. When you later refinance, sell, or pay off the mortgage early, that premium is not refunded. There are a few real exceptions, mainly CMHC’s 25% Eco Plus and Eco Improvement refunds, and the portability feature can stop you from paying twice. This guide explains what you can and cannot get back in 2026.
Quick Answer
- No refund for refinancing. The premium is a one-time, non-refundable charge for insuring the lender against default.
- The main exceptions are CMHC Eco Plus (energy-efficient new homes) and Eco Improvement (energy renovations of at least $20,000), which refund 25% of the premium. You must apply within 2 years of your mortgage closing date.
- To avoid paying twice, port or switch your insured mortgage instead of breaking it, or wait until you have 20% equity before refinancing.
What Is the CMHC Premium and Why Isn’t It Refundable?
In Canada, if your down payment is less than 20% of the purchase price, your lender must insure the mortgage against default. Insurance comes from the Canada Mortgage and Housing Corporation (CMHC) or from private insurers Sagen and Canada Guaranty. You pay for it through a one-time premium, and it protects the lender, not you.
2026 premium rates on a purchase
CMHC’s standard premium depends on your loan-to-value ratio (LTV), which is your mortgage amount divided by the home’s price.
| Down payment | Loan-to-value | Premium (% of loan) | Premium on a $500,000 home |
|---|---|---|---|
| 5% to 9.99% | 90.01% to 95% | 4.00% | $19,000 on a $475,000 loan |
| 10% to 14.99% | 85.01% to 90% | 3.10% | $13,950 on a $450,000 loan |
| 15% to 19.99% | 80.01% to 85% | 2.80% | $11,900 on a $425,000 loan |
| 20% or more | 80% or less | Not required on a purchase | $0 |
A 30-year amortization on an eligible insured mortgage (first-time buyers and new builds) adds a 0.20% surcharge. In Ontario, Quebec, and Saskatchewan, provincial sales tax also applies to the premium, and it must be paid in cash at closing rather than added to the mortgage. Since December 15, 2024, insured mortgages are available on homes priced under $1.5 million.
Why you do not get it back
The premium is priced as a one-time charge for the risk the insurer takes over the life of the loan. Once the mortgage is funded, the insurer has taken on that risk, and the premium is earned. There is no pro-rated refund if you pay off the loan in year three instead of year 25, unlike some car or travel insurance that refunds unused months.
Because the premium is usually added to your mortgage, many homeowners forget they paid it. When you refinance, you pay off the old insured mortgage, so the premium is gone. If you refinance into a new insured loan, you could pay a new premium on top. For first-time buyers working through these rules, our guide to Canadian mortgage down payment rules covers the basics.
Can You Get Any CMHC Premium Money Back in 2026?
Yes, but only in specific situations, and none of them are triggered just by refinancing.
| Program | Who qualifies | Refund | Deadline |
|---|---|---|---|
| CMHC Eco Plus | Buyers of a newly built, never-occupied energy-efficient home with a CMHC-insured mortgage | 25% of the premium | Within 2 years of mortgage closing |
| CMHC Eco Improvement | Buyers who complete at least $20,000 of qualifying energy renovations after buying, with a CMHC-insured mortgage | 25% of the premium | Within 2 years of mortgage closing |
| Refinancing, selling, paying off early | Anyone | None | Not applicable |
CMHC Eco Plus: 25% refund for new energy-efficient homes
CMHC Eco Plus offers a 25% partial premium refund if you used CMHC-insured financing to buy a newly built, energy-efficient home. “Newly built” means the home has never been occupied (condo units have an exception for interim occupancy). The home must either carry an eligible energy-efficiency certification, such as ENERGY STAR, LEED, or Passive House, or have an energy consumption rating at least 20% better than a typical new home under NRCan’s EnerGuide system.
On a $19,000 premium, a 25% refund is $4,750. You apply directly to CMHC with the application form, your energy documentation, and a void cheque. Applications must be submitted within 2 years of your mortgage closing date, and CMHC says processing takes about 8 to 10 weeks.
CMHC Eco Improvement: 25% refund for upgrades
If you buy a home with CMHC-insured financing and then complete at least $20,000 in qualifying energy-efficient renovations, you may qualify for a 25% partial premium refund under Eco Improvement. If you had an EnerGuide evaluation after the work, you submit the EnerGuide Renovation Upgrade Report or label. The 2-year deadline from your mortgage closing date also applies, so plan the renovations early.
Pro Tip: Ask your builder for the ENERGY STAR or EnerGuide documentation before closing, not after. Many new homes already meet Eco Plus standards, but buyers miss the refund because they never ask for the certificate. On a 4% premium for a $600,000 loan, the 25% refund is $6,000, money you only get if you apply within two years.
What about Sagen and Canada Guaranty?
If your mortgage was insured by Sagen or Canada Guaranty instead of CMHC, they have their own energy-efficient premium refund programs with their own rules. Your mortgage documents show which insurer covers your loan, or you can ask your lender.
No refund for refinancing, selling, or paying early
If you refinance, sell, or pay off your mortgage early, you do not get a premium refund. A broker or lender who suggests otherwise should be able to point to the exact program in writing.
How Does Refinancing Affect Mortgage Insurance?
Refinancing means replacing your mortgage with a new one, usually to borrow more money. Under federal rules, most refinances cannot be insured, so a regular refinance is limited to 80% of your home’s value, and you must qualify at the stress test rate.
The secondary suite exception
Since January 15, 2025, CMHC allows insured refinancing to add a secondary suite, such as a basement apartment or laneway home, for rental or family use. It allows up to 90% of the as-improved value, for homes valued below $2 million, with up to a 30-year amortization. You will pay a premium on the new loan. Under CMHC’s refinance schedule, the premium is either a percentage of the whole loan or a higher rate charged only on the increase, and the lower of the two applies.
Refinancing vs porting vs switching
| Option | What happens to insurance | New premium? | Best when |
|---|---|---|---|
| Refinance (borrow more) | Old insured loan is paid off; new loan is usually uninsured, max 80% LTV | No premium if uninsured, but the old premium is lost | You have at least 20% equity and need cash |
| Port to a new home | Insurance moves with the mortgage | Only on any extra amount you borrow, often blended | You are selling and buying with the same lender |
| Switch lenders at renewal | Insured mortgage moves to the new lender | No, if the amount and amortization don’t increase | You want a better rate at renewal |
| Secondary suite refinance | New insured loan up to 90% of as-improved value | Yes, based on CMHC’s refinance schedule | You are adding a rental or family suite |
Switching keeps your premium working
If your goal is a lower rate, a straight switch at renewal is usually the best move. Since November 21, 2024, insured mortgage switches at renewal no longer require you to pass the stress test again, as long as the amount and amortization stay the same. Your insurance stays in place, so the premium you paid keeps protecting the loan, and you can still get a competitive insured rate.
A worked example
Say you bought a $500,000 home with 10% down. Your $450,000 loan carried a 3.10% premium of $13,950, added to your mortgage for a total of $463,950. Three years later, your home is worth $560,000 and, at about a 4.5% rate on a 25-year amortization, you owe roughly $431,500. That is about 77% of the home’s value, so you have about 23% equity.
A conventional refinance can go up to 80% of $560,000, or $448,000. If you refinance to take out $15,000 for renovations, your new loan of about $446,500 stays just under 80%, so it does not need insurance. You pay no new premium, but the $13,950 you paid three years ago is not refunded. You would also likely pay a prepayment penalty for breaking your term early, plus legal and appraisal costs. If you can wait until renewal, you may avoid the penalty entirely.
How Can You Avoid Paying the Premium Twice?
A few planning steps can save thousands of dollars.
Wait for 20% equity before refinancing
If you need to borrow against your home, it usually makes sense to wait until you have at least 20% equity. Then you can refinance into a conventional loan with no new premium. Rising home prices and regular payments both build equity over time.
Use portability when you move
If you plan to move during your term, ask your lender about porting. Porting lets you carry your existing mortgage, and its insurance, to the new home, so you may only pay a premium on any increase rather than on the full new loan. Each lender has its own porting window and rules, so read your mortgage terms.
Check energy refunds early
If you bought a new build or plan energy upgrades, look into Eco Plus or Eco Improvement right away. The 2-year deadline from closing is easy to miss. Keep your EnerGuide report, builder certificates, and renovation receipts in one place.
Avoid unnecessary breaks
Breaking a mortgage early costs a prepayment penalty on top of losing your premium. Before you refinance, compare the total cost: penalty, legal and appraisal fees, and lost insurance value. Keep a cash cushion so you are not forced to refinance in an emergency; see our guide to building an emergency fund in Canada.
Official sources: FCAC: Insurance. Rules, limits and rates can change, so confirm current details with the source or your financial institution.
Key Takeaways
- CMHC premiums in 2026 range from 2.80% to 4.00% of the loan on purchases with less than 20% down, plus 0.20% for a 30-year amortization.
- Refinancing, selling, or paying off early does not trigger a premium refund.
- CMHC Eco Plus (new energy-efficient homes) and Eco Improvement (at least $20,000 of energy renovations) refund 25% of the premium; apply within 2 years of closing.
- Switching an insured mortgage at renewal keeps your insurance and no longer requires a new stress test if the amount and amortization stay the same.
- Porting can limit any new premium to the extra amount you borrow.
- The secondary suite program allows insured refinancing up to 90% for homes under $2 million, but you pay a new premium.
Frequently Asked Questions
Do I get my CMHC insurance back if I sell my house?
No. The CMHC premium is a one-time, non-refundable charge. Selling your home pays off the mortgage, but the premium is not returned. If you port your mortgage to a new home, you can keep the insurance in place instead of paying again.
Can I remove CMHC insurance once I have 20% equity?
You cannot cancel the insurance for a refund. The insurance stays with the mortgage until it is paid off. Once you have 20% equity, you can refinance into an uninsured loan, but the old premium is not refunded.
How do I apply for the CMHC Eco Plus refund?
Complete CMHC’s partial premium refund application and send it with your energy-efficiency certificate or EnerGuide report and a void cheque. You must apply within 2 years of your mortgage closing date. CMHC says processing takes about 8 to 10 weeks.
Will I pay a new CMHC premium if I switch lenders at renewal?
Usually no. If you switch an insured mortgage without increasing the amount or amortization, the insurance transfers with the loan. Ask your new lender to confirm in writing before you sign.
How much renovation do I need for the Eco Improvement refund?
CMHC requires at least $20,000 in qualifying energy-efficient renovations completed after you buy the home, with a CMHC-insured mortgage. If you had an EnerGuide evaluation, include the Renovation Upgrade Report or label with your application, and apply within 2 years of your mortgage closing date.
Conclusion
A CMHC insurance premium refund in Canada is limited to specific cases, mainly the 25% Eco Plus and Eco Improvement programs. Refinancing alone will not give you money back, and it can cost you the value of the premium you already paid. Before you refinance, compare it with porting or switching, and wait for 20% equity if you can. Learn more about mortgage insurance options on CMHC’s website, then talk to your lender about the lowest-cost path for your situation.
Get free Canadian money tips every week
TFSA updates, CRA changes, mortgage strategies — straight to your inbox every Thursday. No spam, unsubscribe anytime.
The GetWealthy editorial team writes plain-English guides to Canadian personal finance, based on official CRA, FINTRAC and government sources and reviewed every year.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Mortgage insurance rules and premiums change; confirm current terms with your lender and insurer. Always consult a qualified mortgage professional for personalized advice.
