As I’m sure you’ve heard, CMHC is changing their lending guidelines on high-ratio mortgages as of July 1st. These changes will have a significant impact on homebuyers wishing to use CMHC’s high-ratio mortgage product. Thankfully the other insurers stated they have no intentions on aligning their high-ratio mortgage products with CMHC’s guidelines.

Canada has 3 mortgage default insurers: CMHC, Canada Guaranty and Genworth. 

Genworth and Canada Guaranty released yesterday, June 8, they have no desire to follow CMHC’s stricter guidelines, and will continue providing mortgage insurance based on the current guidelines. This is excellent news for Canada’s real estate industry.

As of lately, CMHC is predicting doom & gloom of Canada’s Post-Covid real estate market, with extreme predictions of home prices decreasing up to 20%. These predictions coupled with CMHC’s lending guidelines creates a self-fulfilling prophecy.

Thankfully, this is the first time the other mortgage insurers are deciding to disregard CMHC’s changes. This is great news for potential homebuyers and sellers, and should bring some confidence back to the market.

If you have any financing questions you would like to discuss please reach out to me @ 778-215-4121 | adamsale@dominionlending.ca

Warm regards,