Calgary Dream Homes

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New Rules for CMHC-Insured Mortgages



The Canada Mortgage and Housing Corporation (CMHC) is making changes to its insured mortgages. These tighter underwriting standards may make it more difficult for some to qualify for mortgages with less than a 20% down payment.


Here are the details:

Maximum gross debt service (GDS) ratio drops from 39% to 35%
Maximum total debt service (TDS) ratio drops from 44% to 42%
Minimum credit score rises from 600 to 680 for at least one borrower for all CMHC-insured mortgages
No borrowed down payments
Background

According to Will Dunning, Chief Economist for Mortgage Professionals Canada, 61% of first-time homebuyers purchase their homes with less than 20% down.

I will continue to monitor the situation and will keep you updated.


To find out how this change might impact you, please contact me to discuss.


Cathy 403-568-8817

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