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The Exchange: Latest News

Check back often for the latest news and updates from Fish Creek Exchange.

June 12, 2020

CMHC Guidelines Take Effect July 1, 2020

CMHC has just tightened the requirements for insured mortgages coming into effect on July 1, 2020 - but what does that mean for you as a buyer?

First off, what is CMHC?  The Canada Mortgage and Housing Corporation (CMHC) is Canada's national mortgage insurance provider, who insure high ratio mortgages (i.e. mortgages with less than 20% down).

What is changing July 1, 2020?

- Limit on Gross Debt Service (GDS) Ratios from 39% to 35%

- Limit on Total Debt Service (TDS) Ratios from 44% to 42%

- Raising the minimum credit score from 600 to 680 for at least one borrower

- Banning non-traditional sources of down payment that "increase indebtedness"

So what does this mean for you as a purchaser?  Until July 1, 2020 - you have an extra 11% in buying power!  With interest rates at a historical low, which in turn means you can qualify for more mortgage, it's never been a better time to purchase a new home!

If you're worried about the new qualification changes - don't!  There are a few other national mortgage insurance companies (such as Genworth and Canada Guaranty) that have not adjusted their qualification requirements. 

That being said, money is incredibly cheap to borrow right now - and if you have had your eye on a new home, it's never been a better time to purchase!  We have a fantastic collection of move in now homes available - contact us to set up a viewing!

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