CMHC tightens lending standards to protect housing market during COVID-19

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CMHC is tightening restrictions on qualifying for mortgage insurance

A home for sale sign is shown in a Toronto west end neighbourhood May 8, 2020. TORONTO -- Canadians looking to borrow money for a home purchase a home are in for some extra challenges after the Canada Mortgage and Housing CorporationThe country's national housing agency is increasing the qualifying credit score for mortgage insurance to 680 from 600 and limiting gross and total debt servicing ratios to their standards of 35 per cent and 42 per cent, respectively.

Under the changes effective July 1, CMHC will also no longer treat non-traditional sources of down payment funding, such as a personal unsecured line of credit, as equity for insurance purposes.The move comes just weeks after Siddall appeared before the Standing Committee on Finance in Ottawa to warn of trouble ahead for the housing market."Home ownership is like blood pressure: you can have too much of it.

Spokesperson Leonard Catling said the changes "were not made because of our current book of mortgage insurance business, rather to maintain its integrity.

 

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They want their money not the business, they wont change it because they lost when people lost their homes with no payment, what a bunch of thievery morons.

Another bit of evidence that big banks are not your friends.

Again?

The beating will continue until morale improves ...

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