Effective July 1, 2020
Canada Mortgage and Housing Corp (CMHC) announced Thursday it would tighten rules regarding mortgage insurance starting July 1 2020.
Evan Siddall of CMHC has stated that these changes are designed to ensure borrows have a larger down payment / borrow less, and that these measures will curtail excessive demand and unsustainable house price growth.
CMHC is a household name and currently the largest default insurer in Canada. However, they are not the only option. At this point, other insurers have stated that they are not planning on following suit. Unless this changes, CMHC is likely to insure a smaller percentage of Canadian Mortgages.
Even before these changes came into play, CMHC insured a small portion of our mortgages. This change will have little to no impact on True North Mortgage clients.