Effective May 30,2014 CMHC rule changes for second homes take effect. CMHC introduced the second home product in 2005 to offer borrowers more financing options when purchasing an owner-occupied second home located anywhere in Canada. The recent changes will limit the availability of homeowner mortgage loan insurance to only one property (1-4) units per borrower or co-borrower at any given time.
Therefore any homeowners wishing to purchase a second property and require mortgage loan insurance will be unable to do so unless they refinance their existing home into a conventional mortgage.
These changes will not impact the number of rental properties currently owned with previous mortgage loan insurance in place through CMHC.
For more information call Pauline at 604-813-8402 or email pauline@mybcmortgage.ca