Important Mortgage Changes From CMHC

Mortgage changes are coming for Canadian home buyers on July 1st.

The Canada Mortgage and Housing Corporation (CMHC), unveiled stricter underwriting policies on Thursday for insured mortgages. The measures include:

Limiting Gross Debt Service (GDS) ratios to 35% (from 39%)
Total Debt Service (TDS) ratios to 42% (from 44%)
Minimum credit score up to 680 (from 600) for at least one borrower
Banning non-traditional sources of down payment that “increase indebtedness”
CMHC’s changes reduce homebuyers’ purchasing power by up to 11% “
Roughly 18% of CMHC’s high loan-to-value originations had a Gross Debt Ratio of more than 35%, according to a report from RBC Economics.
And about 5% of CMHC’s originations had credit scores of less than 680, according to data from Mortgage Professionals Canada
Contact The Odland & Blair Group
If you are thinking of selling your home soon we would be happy to give you a FREE online home evaluation!
Click Here: FREE HOME EVALUATIONS
Want to learn more about The Odland & Blair Real Estate Group with Royal LePage Triland Realty?
Click Here: ABOUT US
Looking for more information on the London market? You can visit the London & St Thomas Association of Realtors site.
Click Here: MARKET UPDATES