New Mortgage rules

While forecasting a collapse in house prices of as much as 19% over the next 12 months, Canada Mortgage and Housing Corporation is tightening the rules for its mortgage insurance. As of July 1st, applicants will need a bigger credit score, a smaller debt load and more, real money up front for CMHC insured mortgages.  It could be seen as an effort to squelch any growth in demand triggered by improved affordability. It is important to note that these changes are not Federally mandated and there are two private mortgage insurers available, Genworth and Canada Guarantee, that have not made any changes.  To date Banks and Mortgage Lenders have not made any changes and continue to select the appropriate Insurer for approval. CMHC is upping [...]