Brokerage License: #10250 Independently Owned and Operated

  • Home
  • About
    • The Welch & Co Team
      • About Raquel
      • Gib Hannah
      • Guy Ferguson
    • Partners
    • Testimonials
  • Resources
    • Online Application
    • First Time Home Buyers
    • Mortgage Renewals
    • Homeowner Refinancing
    • Blemished or No Credit
    • Mortgage Tips
    • Real Goods
    • Seniors
    • Email Consent
  • Calculators
    • Mortgage Qualifier
    • Mortgage Calculator
  • Rates
  • Blog
  • Contact
Search
  • Home
  • About
    • The Welch & Co Team
      • About Raquel
      • Gib Hannah
      • Guy Ferguson
    • Partners
    • Testimonials
  • Resources
    • Online Application
    • First Time Home Buyers
    • Mortgage Renewals
    • Homeowner Refinancing
    • Blemished or No Credit
    • Mortgage Tips
    • Real Goods
    • Seniors
    • Email Consent
  • Calculators
    • Mortgage Qualifier
    • Mortgage Calculator
  • Rates
  • Blog
  • Contact

8
jun
0

CMHC Changes mortgage rules again!

Posted by Welch & Co, Mortgage ProfessionalsMortgage News!, Uncategorized, Understand MortgagesNo Comments

Summary of CMHC Underwriting Criteria Changes

 

1. Enforcing Gross/Total Debt Servicing (GDS/TDS) ratios of 35%/42%.

CMHC previously approved loans with ratios up to 39%/44% for borrowers with high credit scores and more reliable income.

CMHC-insured loans with a GDS above 35% represent an average of 18% of transactional new insurance written.

*******

2. Establishing a minimum credit score of 680 for at least one borrower.

The previous CMHC standard was a minimum 600 credit score.

*******

3. Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.

In 2019, non-traditional sources of down payment applications were less than 2% of all CMHC’s homeowner transactional approved loans with a loan to value above 90%.

*******

At this time, it is not determined whether Canada Guaranty and Genworth will follow suit with these guideline changes….

mortgage rules; credit score; CMHC;

About Welch & Co, Mortgage Professionals

No Comments

Leave a Reply Cancel Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Apply Now

Resources

  • Online Application
  • First Time Home Buyers
  • Mortgage Renewals
  • Homeowner Refinancing
  • Blemished or No Credit
  • Email Consent

Calculators

  • Mortgage Qualifier
  • Mortgage Calculator

Recent Posts

  • Starting Over ~
  • Bank of Canada Maintains Record Low Overnight Rate
  • CMHC Changes mortgage rules again!
  • Update on COVID-19 Kingston & Lenders’ Relief Options
  • Bank of Canada cuts rates again

Give us a call

613-546-2989

Connect with us

Contact Info

Address: 775 Blackburn Mews, Kingston ON K7P 2N5
Email: welchco@mtgprof.com

Licensed Agents

Raquel Welch: #M10000573 613.888.3599 raquel@mtgprof.com
Nancy Naim: #M08002086 613.532.3307 nancy@mtgprof.com

Connect With Us

© Welch & Co. Mortgage Professionals, 2022.
Website Design by RedTrain
About Resources Online Application Rates Contact