That fee would be paid upfront.
I come from the great province of Saskatchewan, where housing has been going up substantially in the last few years. A year later, when I go to renew my mortgage, my lender may tell me that I could pull out some equity. The equity would be at 80%, so I would no longer need the CMHC guarantee. I would have used that insurance for only one year. Would I get any of that $1,800 back?