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 30th. 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.
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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