# How do CMHC-insured mortgages benefit you with smaller down payments?

> CMHC purchase programs enable homebuyers to purchase a home with a minimum down payment from flexible sources, making homeownership accessible.

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/how-do-cmhc-insured-mortgages-benefit-you-with-smaller-down-payments

## Answer
CMHC purchase programs enable homebuyers to purchase a home with a minimum down payment from flexible sources, making homeownership accessible. This allows individuals with limited savings to enter the housing market.

## Institutional highlights
- With a smaller down payment, you can still buy a home, financing up to 95% of the purchase price.
- You only need 5% down on the first $500,000 and 10% on the rest, making homeownership more accessible.
- Your down payment can come from savings, selling a property, or even a gift from a family member.
- If you have less than 10% down, you have more options for where your down payment comes from.
- You can spread your mortgage payments over up to 25 years (or even 30 with some programs), lowering your monthly costs.

## Related guide
- https://ratellow.com/guides/insured-mortgage-advantage

## Sources
- Page 2 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=2
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1
- Page 3 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=3
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026