# How does downsizing impact mortgage insurance (CMHC)?

> CMHC insurance is required when down payment is less than 20%. The $1,000,000 threshold is not a limit for skipping insurance; rather, the max insurable property value is $1,500,000. Seniors with more than 20% down on any property under $1,500,000 do not require CMHC insurance.

Category: Strategy
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/strategy/how-does-downsizing-impact-mortgage-insurance-cmhc

## Answer
CMHC insurance is required when down payment is less than 20%. The maximum insurable property value is $1,500,000. Properties over $1,500,000 are uninsurable by CMHC, so mortgage insurance is not available for such properties. Seniors porting an insured mortgage can port the coverage without new premium costs if the loan amount is not increasing. If they 'top up' their insurance (i.e., increase the loan amount), a new premium is charged on the increased amount.

## Related guide
- https://ratellow.com/guides/senior-mortgage-retirement-income

## Sources
- FCAC Guide: Reverse Mortgages — https://www.canada.ca/en/financial-consumer-agency/services/industry/laws-regulations/guideline-existing-mortgage-loans-exceptional-circumstances.html#toc3
- B-20 Pension Qualification — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.3.1