On July 1, CMHC will be tightening the lending standards for home buyers to obtain mortgage insurance.
This affects those buyers who are planning to purchase with less than 20% as a downpayment, for it is these buyers who are obligated to have mortgage insurance.
Just an FYI, this particularly affects buyers who hoped to get their financing through one of the 5 main banks. There are other institutions that obtain their mortgage insurance from another provider, and these will be unaffected.
All the more reason to work with a mortgage broker these days. A good mortgage broker has access to institutions that are more flexible in their lending practices, as well as with the Big 5. Buyers should be sure they are getting all the information they need. These new rules will mostly affect first time buyers.
For more information visit this Globe and Mail article: