CMHC Approval Turnaround Time When Purchasing a Home

What You Need to Know About CMHC

Mariko Baerg Realtor Headshot
Written By: Mariko Baerg, REALTOR of Bridgewell Real Estate Group
If you’re looking for a realtor to help you purchase a property, call me today

This blog is a break down of Canada Mortgage and Housing Corporation (CMHC) and its role in the real estate purchasing process. Read for details!

cmhc turnaround time

What is CMHC?

CMHC stands for Canadian Mortgage and Housing Corporation. CMHC mortgage loan insurance is required for high-ratio mortgages, in which a buyer contributes less than 20 percent down payment towards their home purchase.

This mortgage loan insurance is in place to help protect lenders against mortgage default, and to help ensure that buyers are not being stretched too thin when purchasing a home. [i.e. in the case that interest rates increase]

Minimum down payment for homes under $500,000 is 5% in BC. For more details on minimum down payments in BC, click here: Minimum Down Payment Rules BC

When do I need to obtain CMHC approval?

As mentioned previously, you need to obtain CMHC approval for a loan when you are putting less than 20% down. Therefore, both the lender and CMHC need to approve your purchase in order for you to obtain a mortgage loan.

By law, the banks cannot lend more than 80% of the value of a house on a mortgage without CMHC mortgage insurance backing them.

What is a mortgage insurance premium?

When you obtain mortgage loan insurance via CMHC, the lenders are then charged and insurance premium which is then passed down to you as a buyer. This premium has had recent changes and works on a sliding scale, but the basis is that your premium payable is based on a percentage of the home’s purchase price that is financed by a mortgage. Therefore if you put 5% down vs. 15% down, your premium will vary.

This premium can be paid in a single lump sum amount, or it can be added to your monthly mortgage payment.

For more details on the recent CMHC Insurance Premium increase, click here: CMHC Insurance Premium Increase

What is the CMHC Turnaround Time?

According to a variety of brokers that we talk to, CMHC turnaround time can vary from 24-72 hours.

If you are thinking of writing a subject free offer or have a quick subject removal, you can also ask your broker to give them a call in advance to see if there are any red flags on the property/building. It will give you a better idea of whether or not the lender will be willing to give you the mortgage based on CMHC.


For more details on CMHC and how to qualify for a mortgage, call us today at 604-765-0376. Prefer text? 604-319-0200. or email [email protected] to start a conversation.

Make the home buying process straight-forward from the start. Talk to one of our realtors today.


Want to talk right now?
Give us a call 604-765-0376 or text 604-319-0200.

Are you looking for
an expert to help
guide you through the
home buying process? 

With Bridgewell’s buyer systems and plans we’re determined to find the right home for you efficiently & effectively all while providing you the guidance and education that you need. Whether it’s presale or resale, investment or to live in, we’ve got you covered.

Related Articles: 

Buyers real estate guide


Do you like our blog?

Sign up for our newsletter to get tips, stats and market updates sent to your email!

This contact form is deactivated because you refused to accept Google reCaptcha service which is necessary to validate any messages sent by the form.

© Copyright - Bridgewell Real Estate Group