CMHC is cutting the types of mortgage insurance it offers, meaning the era of tighter rules for homebuyers hasn’t come to an end.
 
The Crown corporation said late Friday it will stop insuring mortgages on second homes, effective May 30^th. Anyone who has an insured mortgage will no longer be able to act as a co-borrower on another mortgage that CMHC insures. In addition, it will stop offering mortgage insurance to self-employed people who don’t have standard documents to prove their income.
 
CMHC said it does not expect the new rules to have a big impact on the housing market, but hinted more changes are on the way.
 
So far, Genworth and Canada Guaranty have not announced plans for similar changes.
 
Click here to read more from the Globe and Mail.
 

The constant in mortgages is change. The Angela Calla Mortgage Team is here to help you for the life of your mortgage at 604-802-3983 callateam@dominionlending.ca

Putting your full faith in a mortgage preapproval is like betting on a heavy favourite in a horse race. You’ll probably win but there’s room for major disappointment.
 
Sure, preapprovals have benefits:

• The best ones accurately measure your qualifications and how much house you can afford
• Their 90- to 120-day rate guarantees protect you if rates rocket up while you’re home hunting
• They make you seem more serious to sellers and real estate agents. (In competitive bidding situations,      they’re almost mandatory)
• They’re free and there’s no obligation to use the lender that preapproved you

But here’s the problem: preapprovals are not full approvals. So if you’re going to rely on one, you need to understand their limitations.
 
Click here for 10 preapproval facts every mortgage shopper should know courtesy of the Globe and Mail.

The Angela Calla Mortggae Team is here to help you with your mortgage contact us at 604-802-3983 or callateam@dominionlending.ca