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CMHC Rule Change Effective July 1,2020

CMHC Rule Changes Effective July 1, 2020

CMHC rule change will affect home buyers and sellers
Canada Mortgage and Housing Corporation (CMHC) is tightening its rules to qualify for an insured mortgage. At least one applicant's credit scores will need to be 680, up from the previous minimum of 600. To ensure borrowers can keep up with payments, maximum total debt service ratios will be lowered from 44 to 42

The main changes to CMHC lending rules
Gross debt service (GDS) ratios must be under 35, down from 39.
Total debt service (TDS) ratios must be under 42, down from 44.
Borrower's credit score must be at least 680, up from 620.
Borrowed down payments will no longer be allowed.
For additional information about how this will affect you call me

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