CMHC makes it harder to qualify for insured mortgage
New insured mortgages rules
Starting July 1, 2020 government backed Canadian Mortgage and Housing corporation (CMHC) will be tighten rules. Under new rules, to qualify for a insured mortgage you will need a minimum credit score of 680 which was previously 600.
Other changes limits the gross debt serving ratio to 35 percent of the total annual income from previously 39 percent. Also Total debt servicing ratio will be limited to 42 percent of total annual income versus previously 44 percent. Because of these changes many buyers will be qualifying for smaller mortgage amounts as compared to before 01-July-2020.
To learn more how these changes will effect you, please contact us.