CMHC Mortgage Rules – Are They Impacting You?
Various government and private organizations have put measures in place to protect the interests of Canadians during the pandemic. One of these organizations is the Canada Mortgage and Housing Corporation (CMHC).
CMHC, Canada’s national housing agency, put new rules in place this July and tightened its underwriting policies for insured mortgages. The key changes were:
- Reduced allowable GDS/TDS ratios.
- Higher minimum credit score requirement (680).
- Moving forward, non-traditional sources of down payment will not be considered as equity.
The level of impact these changes will have on your business depends on the type of borrowers you’re serving.
So, if you serve a customer base that is more likely to be affected by these changes, you will have to find ways to adapt.
Find out how you can stay agile and competitive in a Post-COVID-19 world on the Purview blog.