Changes to CMHC insured mortgages starting July 1st 2020...
June 5, 2020 | Posted by: Natalie Wellings
Over the last few months, I have found lenders and insurers scrutinizing files more than usual. CMHC has just released some new underwriting guidelines where they will restrict housing costs to 35% of gross income (previously 39%). They are also enacting a rule which states that at least one borrower on the file must have a minimum 680 beacon score. The ability to borrow the down payment from an unsecured source (such as a credit card or personal line of credit) will also be removed.
So, far, the other two insurers (Canada Guaranty & Genworth) have not followed but I suspect they will soon.
These new rules come into place on July 1st and will make it even tougher for Canadians to purchase homes.
It is more important than ever to have a professional navigate the complex world of mortgages (at no cost) for you. If you have questions, please drop me a line!
More information on the changes HERE.