PST on CMHC Insurance Premium
Budget for PST at closing — not in the mortgage.
CMHC premiums are subject to provincial sales tax in ON, QC, SK and MB. PST on insurance premium is NOT capitalizable in the mortgage— it is paid upfront, out-of-pocket, at closing as a cash line item. This trips up first-time CMHC deals.
PST on premium · Ontario
$24,000
At 8% of $300,000 premium
Premium$300,000
PST (8%)$24,000
Total premium + PST$324,000
PST as % of loan0.24%
Upfront cash at closing. The premium itself capitalizes onto the loan. The PST does not — include it in your closing cash reconciliation alongside legal, appraisal, and lender fees.
Reference · $100,000 CMHC premium
| Province | PST rate | PST on $100K | Total |
|---|---|---|---|
| Ontario | 8% | $8,000 | $108,000 |
| Quebec | 9.975% | $9,975 | $109,975 |
| Saskatchewan | 6% | $6,000 | $106,000 |
| Manitoba | 7% | $7,000 | $107,000 |
| British Columbia | — | $0 | $100,000 |
| Alberta | — | $0 | $100,000 |
| Nova Scotia | — | $0 | $100,000 |
| New Brunswick | — | $0 | $100,000 |
| Newfoundland & Labrador | — | $0 | $100,000 |
| Prince Edward Island | — | $0 | $100,000 |
| Other / no PST | — | $0 | $100,000 |
Enter loan details to compute the premium first, then PST.
Computed premium
$462,000
4.62%
PST (8%)
$36,960
Upfront at closing
Total premium + PST
$498,960