On June 4th the Canadian Mortgage and Housing Corporation announced new rule changes as follows;
1. All buyers will have to qualify with limited debt servicing rations. Change from
39% to 35% of gross income income on house spending and from 44% to 42% for gross income including all other loans.
2. The new minimum credit score is set to 680—meaning buyers will need a “good” credit score to qualify for a home loan.
3. Can no longer borrower your down payment to qualify. All borrowers must provide the down payment “from their own resources, these can include savings; equity from the sale of a property; a non-repayable financial gift from a relative; funds borrowed from other, liquid financial assets or against other real property; or a government grant.
The good news in all this is that we still have two other insurers that are not changing how they do business.
When you are looking for a mortgage, talked to an experiences Broker that will work with you and provide options.