Do the new CMHC rules matter?
Canada Mortgage and Housing (CMHC) announced changes to the rules for high ratio buyers this week. But these new rules with CMHC for first time buyers mean little change for many.
Effective July 1st CMHC will no longer insure mortgages for buyers with a credit score lower than 680 and debt servicing will be tightened with a resulting drop in buying power of 10%.
However, there are three insurers in Canada (including Genworth and Canada Guaranty) and the other two private insurers will not follow the CMHC changes.
Therefore it will be important for buyers to review their needs with an independent mortgage broker who has access to many lenders working with all three insurers.
So all is not lost for the first time home buyer. For those with lower credit scores it will be important to build good credit practices as all lenders and insurers will be taking a closer look at those with lower scores. It is now more important than ever to consult with your Dominion Lending Centre Mortgage Broker to review your needs and get the guidance you need as a first time home buyer.
We have access to many lenders including banks, credit unions and mortgage companies. Visit my home page for a list of all Canadian lenders at www.MyBcMortgage.ca