CMHC Mortgage Insurance
CMHC announced changes to its mortgage insurance underwriting and acceptance criteria.
Effective July 1, the following changes will apply for new applications for high ratio mortgages. CMHC is tightening qualification, thus making it harder for homeowners having less than 20% down.
1. The maximum gross debt service (GDS) ratio drops from 39 to 35
2. The maximum total debt service (TDS) ratio drops from 44 to 42
3. The minimum credit score rises from 600 to 680 for at least one borrower
4. Non-traditional sources of downpayment that increase indebtedness will no longer be treated as equity for insurance purposes.
Contact us to discuss your transaction and take advantage before the new rules commence.