Housing Hustle: CMHC Tightening Policies On Mortgages

Housing Hustle: CMHC Tightening Policies On Mortgages

  • Canada Mortgage and Housing Corp announced on Thursday that it will tighten it’s policies for offering mortgages. This implementation will begin on July 1 after forecasting declines of 9% to 18% in home prices over the next 12 months.
  • This means it will make it harder for riskier borrowers who offer down payments of less than 20% to access Canada Mortgage and Housing Corp insurance. You will need a minimum of 680 credit score instead of the current 600.
  • CMHC will limit the gross debt servicing ratio to 35 percent of annual income compared to the current threshold of 29%. Total debt servicing to 42% vs as much as 44%. 
Previous article The NBA Bubble Life with Sixers Mattise Thybulle

Leave a comment

* Required fields