Learn The New CMHC Mortgage Rules Effective July 1, 2020 | Canada
On Thursday, June 4th, we learned that the Canadian Mortgage and Housing Corporation (CMHC) will announce the tightening of debt ratios and modifications to all borrowed down payment.
Wondering how these new rules may affect you?
As of July 1st, CMHC’s new mortgage rule changes will be rolled out to include:
- A minimum credit score of 680 for at least one borrower
- Eliminate borrowed down payments
- Remove exceptions to and lower debt ratio limits
These new rules will cut Canadians’ home buying power by almost 12%, that’s if you are purchasing with less than 20 % down payment.
The combination of higher mortgage debt resulting from mortgage deferrals during the pandemic, together with CMHC’s forecast of declining house prices and increased unemployment “is cause for concern for Canada’s longer-term financial stability,” he added—making the rule changes necessary.
If you were looking to purchase a home, shopping for a mortgage renewal or refinancing, or buying to invest — and, you are wondering how these new rules may affect you, let’s have a discussion.
It’s our responsibility to educate you on what’s happening in the industry that might affect you. At the end of the day, we are here to get you the best possible loan.
The process is not complicated, lengthy, or overwhelming. As your broker, we are here for you every step of the way!
Currently, we have the following outstanding 5-year rates available on certain types of purchases:
- Breakthrough Fixed Rate: 1.94%
- Variable Rate: 1.79%
Get a Mortgage Quote (No Obligation)
At Butler Mortgage, we offer a no-fee, no obligation mortgage approval and mortgage quote that help simplify the entire process. We do a lot of the heavy lifting, shopping and contacting multiple lenders on your behalf. And, we can do all of this over the phone.