You do not have to. The insurance should only be on the top-up amount of the loan. Be careful though as CMHC may not agree on the valuation of the property if it is a top-up insurance and you may not get the property value you need to renew or refinance a mortgage.

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I want to break my mortgage with bank a and move it to bank b. i am getting 5.45 % fixed closed mortgage rate from bank a and bank b is giving me a 4.4% intrest rate if i bring my mortgage to them. my current balance lets say is 200k with bank a. if i break my mortgage the bank b will have to pay 4k to bank a and my mortgage will move from bank a to bank b. now my total mortgage amount will be 204k. bank b will then give me 4k cash back. is this a good deal? also when we financed our current house we had to pay cmhc fee. will be pay that fee again? which means that lets say our mortgage was at 200k, then add 4 k for the panelty and if i have to add another few thousand for chmc, then my total will be way over 204 k, which does not seem to be a good deal or is it.? please help. thanks.

Well, you would be saving 1.05% in interest which is pretty good. Just do a re-fi with Bank B and roll the closing costs into the new mortgage. Good luck!