This is sad but true.  I think the .45% rate difference is a little padded in order to try and make the authors point as there are currently rate specials of 3.09 for clients with 20% down (as long as they stick to a 25 yr AM).  All in all it's a bit of a broken system...while many here will disagree with this comment, CMHC should go back to offering insurance at all LTV levels and for all transaction types. 

The "taxpayer on the hook" argument just doesn't hold water.  CMHC has $16B in risk reserve built up and on top of this has returned over $20B to the Canadian taxpayer since 2006. The absolute worst predictions out there indicate that a "US Style" housing meltdown would lead to $6B in losses...and this worst case is near impossible as lending standards in this country have always been significantly more prudent than those south of the border.

CMHC is a cash cow to the taxpayer, not a burden.