CMHC Insurance Qualifying Changes

When COVID started to make a significant impact on the Canadian economy, CMHC made a decision to reduce their maximum debt to income ratios as well their minimum credit scores to reduce their perceived risk during this time. However, CMHC has now opened up their market share again back to their pre-COVID regulations. This opens up a third insurer option for mortgage applications when debt to income ratios are extended.

Mortgage insurers are an incremental part of our mortgage qualifying in Canada. When you purchase a home with less than 20% down (outside of other reasons), the insurer will step in to provide default insurance for the bank. Check out the article here from CMHC for more information on the qualifying changes.