The Bank of Canada announced today that it is maintaining the benchmark rate, noting that our recovery is better than anticipated but that economic slack and uncertainty remain, particularly

Dated: August 25 2020
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The Canadian Mortgage and Housing Corporation (CMHC) has implemented new underwriting criteria (eligibility requirements) to apply for homeowner transactional and portfolio mortgage insurance. Introduced earlier this summer, these new adjustments from CMHC come as a precaution while the COVID-19 pandemic continues to impact consumers in the real estate market and many other aspects of day-to-day life.
The following changes have been made:
However, not all Canadian mortgage insurers have followed suit. Canada’s other two mortgage insurers, Genworth Canada and Canada Guaranty, announced earlier this summer they would not be following CMHC’s lead.
In a statement at the time, Genworth confirmed, “it has no plans to change its underwriting policy related to debt service ratio limits, minimum credit score and down payment requirements.”
Canada Guaranty echoed this sentiment saying it “confirms that no changes to underwriting policy are contemplated as a result of recent industry announcements.”
How is mortgage insurance affected?
Mortgage insurance protects lenders in the event homeowners default on their mortgage. Home buyers purchasing a home with a down payment of less than 20% must have mortgage insurance. The following underwriting criteria are the main figures taken into consideration for mortgage insurance applications:
For more information, consult our affordability calculator, the Home Buyers’ Road Map or contact your REALTOR®.
How does this all affect me?
While CMHC has made these slightly stricter underwriting restrictions as a precaution for the economic impact COVID-19 has had on the housing market, current trends are showing a promising rebound. Canadian home sales and prices have trended upwards through May, June and July following an initial decline in March and April, although on a year-to-date basis we remain below 2019 figures.
The Canadian housing market will see the financial and economic impact of COVID-19 unfold for months to come, and each province and territory’s recovery plan varies. To stay in the know of how the market is evolving, visit CREA.ca for monthly housing market statistics reports or create a REALTOR.ca account for the latest information on the housing market and tips for your home.
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The Bank of Canada announced today that it is maintaining the benchmark rate, noting that our recovery is better than anticipated but that economic slack and uncertainty remain, particularly
The Bank of Canada announced today that it is keeping the overnight rate steady at 0.25%. It is expected the Bank will keep this target unchanged until well into 2023 to aid our economic recovery.
The Canadian Mortgage and Housing Corporation (CMHC) has implemented new underwriting criteria (eligibility requirements) to apply for homeowner transactional and portfolio mortgage insurance.
The Bank of Canada ("BOC") announced today that it is holding its target for the overnight rate at the "effective lower bound" of 0.25%. Cameron Strong, CEO, Invis Mortgage Intelligence notes