Due to the Covid-19 Pandemic and its potential effect on housing prices over the next 12 months, effective July 1, 2020 CMHC will be implementing these changes to insured mortgage applications.
- Limiting GDS (Gross Debt Servicing) to 35%
- Limiting TDS (Total Debt Servicing) to 42%
- Ensuring at least one borrower has a credit score of 680 or greater
- Borrowed downpayment will no longer be an acceptable source
PLEASE NOTE: GE (Genworth) and CG (Canada Guaranty) – The other 2 default insurance providers have confirmed as of now they are not changing any of their lending guidelines.
If you would like any additional information on the above or wondering if this effects your current approval/pre-approval please feel free to reach out anytime we are always here to help!