The Canada Mortgage and Housing Corporation (CMHC) has new changes to their program effective May 30th, 2014. CMHC is committed to benefiting all Canadians by contributing to the stability of the housing market, while effectively managing and reducing taxpayers’ exposure to risk. The program is undertaking a review of it’s mortgage loan insurance business.
What are the CMHC program changes?
CMHC is discontinuing its Second Home and Self-Employed Without Third Party Income Validation mortgage insurance products (both high and low ratio), effective May 30th, 2014.
Why are these changes occurring?
Both these types of mortgage insurance products accounted for only a small portion of CMHC’s business last year, in 2013. These changes are not expected to have a material impact on the housing market.
If you are self-employed you are still are able to qualify for CMHC-insured financing through CMHC homeowner products with validation of their income using traditional methods.