I wanted to touch base to update you on what to expect with the new CMHC updates. Learn more about the update here and listen to Angela’s segment with Jill Bennett here.

Who does this impact? People making a home purchase with less than a 20% down payment.

There haven’t been enough details released at this time to rush to conclusions. We will keep you updated as things go along. Remember to follow our Facebook or Instagram pages for updates!

Things to note:

• This does not come into place until July 1^st and only with CMHC purchases less than 20% down.
• These updates are a CMHC initiative under the national housing act, NOT a the Ministry of Finance.
• The other insurers have a meting next week with government and they would prefer to keep things the way they are. They don’t feel the losses that CMHC mentioned are consistent with there portfilios.
• They said our default rate is still below a half of a percent and even in the crisis of 2008 people still paid their mortgages.
• CMHC has a very different portfolio than the other insurers.
• With the deferral program ALL insurers were brought to the table. This update is ONLY CMHC and it was done under the National Housing Act NOT directed by the Ministry of Finance

Some other changes are relative to your credit score – one borrower has to have a score of 680 (average Canadian score is 650) – and you will not be able to use a borrowed downpayment.

We protect credit scores and help improve them by using only one application to shop all lenders. Most lenders already have these credit score minimums in place.

Most lenders already implementing the non-borrowed down payment policy and most who would take that route don’t have the income to qualify to do so anyway.

IF this is something the other insurers are forced to follow it will reduce buying power for those who need it most by 10% on average for those purchasing with less than 20% down.

We will be here to help you through all these changes when the time comes. We are available anytime at callateam@dominionlending.ca to help guide you.

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

The CMHC just released its new underwriting criteria effective July 1st for those purchasing with less than 20% down.

• The minimum credit score will increase to 680 from the previous 600
• Borrowing ratios of income percentage will tighten up a bit
• They will not allow borrowed down payments ie. Lines of Credit, credit cards
• Maximum gross debt service (GDS) ratio drops from to 35
• Maximum total debt service (TDS) ratio drops from 42

This release is a CMHC ONLY initiative! There are still two other insurers in Canada who do not see the same risks.

Further to this, the Bank of Canada feels very strongly about our economy, recently announcing interest rates will continue to stay low.

Learn more about this announcement here.

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.

As an independent mortgage professional, I grow more and more grateful for the opportunity to help our clients get the best mortgage (without bias and while protecting their credit score) when I hear unfortunate stories like Kristina’s. Read it here.

When Kristina Barybina’s income quickly dried up due to this pandemic she knew there’d be a penalty for getting out of the mortgage early – she just wasn’t expecting it to be almost $30,000.

7 out of 10 Canadians will break their mortgage prior to renewal – I can give you a long list of reason’s why, however, let’s try to keep this brief. People often say, “It doesn’t matter, I’m not going to need to sell” or “I am never going to have to break my mortgage”.

The lenders noted in this article are fantastic lenders, ones that we use when its warranted to do so and in the best interest of the client. Some Canadians can qualify for a better mortgage that does not have posted rates and results in a MUCH lower exit penalty. Those who have a higher penalty may not have been able to qualify for a mortgage with these lenders.

Hopefully, if you are reading this, you will want to verify which lenders you can qualify for to protect yourself and those you love by consulting with us.

Today is evidence that NOBODY can predict the future so IF you can qualify for a better mortgage through a monoline lender ONLY accessible by an INDEPENDENT mortgage professional, why would you sign on to pay more?

We go over this and the why behind everything mortgage in my book The Mortgage Code.

Angela Calla is a 16-year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from all sales will be donated to Access Youth Outreach Services. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.