If you have less than 20% down payment for the purchase of your home, CMHC is about to make it harder for you to qualify for a mortgage.
CMHC, The Canada Housing and Mortgage Corporation, is a mortgage insurance provider for people without at least 20% to put down on their home. They are probably the most popular insurer used by Canadians when purchasing their home and mortgage insurance is not optional with lower down payments.
As of July 1st 2020, CMHC's guidelines for qualifying will change.
The changes relate to: the sources that your down payment may come from, the minimum credit scores applicants must have, as well as tightening up debt service ratios.
This will also effect people selling, as their pool of qualified buyers may have just shrunk due to these rule changes.
Read the full article with all the details here...CMHC Tightens Up Requirements