RULE UPDATE
HUGE CHANGE COMING FOR BUYERS ….. CMHC has made the below change effective July 1, 2020 .. if you or someone you know is buying with less than 20% down … this will reduce the amount you can borrow. The average impact will be a 14-15% REDUCTION in maximum purchase price!
SAMPLE IMPACT:
$300,000 Max Purchase Price today
$260,000 Max Purchase Price after July 1st
RULE CHANGE:
* Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to our standard requirements of 35/42;
* Establish minimum credit score of 680 for at least one borrower; and
* Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.
I am here if any questions arise.
Cheers,
Bob Rees
Mortgage Broker
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