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CMHC’s new rules won’t impact you
Author:
Condos.ca Staff
Publication date:
June 12, 2020
Article Summary:
The Canada Mortgage and Housing Corporation (CMHC) has tightened its rules around the mortgages it insures, reducing the buying power of first-time buyers by up to 12%. However, private insurers Genworth and Canada Guaranty have announced that they will not be making the same changes to their underwriting policies. Borrowers with lower down payments, higher debt loads, or less than stellar credit scores can still maintain their current buying power with these private insurers. The CMHC's new rules, which come into effect on July 1, 2020, include changes to the Gross Debt Ratio, Total Debt Service Ratio, credit score requirements, and down payment restrictions. Economists have criticized the changes as "poorly timed" and "unconventional".
Keywords:
CMHC, mortgages, first-time buyers, buying power, private insurers, Genworth, Canada Guaranty, underwriting policies, debt service ratio, credit score, down payment, higher risk, government entity, economists.
Source Citation:
Condos.ca Staff
CMHC’s new rules won’t impact you
June 12, 2020
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