# Can CMHC insurance apply to construction mortgages?

> Yes — CMHC's Progress Advance program insures construction mortgages with as little as 5% down when using an approved builder with a fixed-price contract, owner-occupied, up to $1.5M.

Category: Financing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/financing/can-cmhc-insurance-apply-to-construction-mortgages

## Answer
Yes, but with conditions. CMHC's Progress Advance program allows insured construction financing with as little as 5% down when using an approved builder with a fixed-price contract. The property must be owner-occupied, and the total loan cannot exceed $1.5M (post-Dec 2024 reforms). Self-builds are generally not eligible for CMHC insurance during construction but can be insured at completion conversion.

## Related guide
- https://ratellow.com/guides/construction-mortgages-canada

## Sources
- CMHC Progress Advance Program — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf
- B-20 Construction Lending Standards — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.4