The CMHC has just ‘tightened’ their mortgage regulations again.
You might not have know that the CMHC would provide mortgage insurance on second homes, but they won’t anymore:
Canada Mortgage and Housing Corp. is cutting the types of mortgage insurance it offers, meaning the era of tighter rules for home buyers hasn’t come to an end.
The Crown corporation said late Friday it will stop insuring mortgages on second homes, effective May 30. Anyone who has an insured mortgage will no longer be able to act as a co-borrower on another mortgage that CMHC insures. In addition, it will stop offering mortgage insurance to self-employed people who don’t have standard documents to prove their income.
Gotta love that first sentence: The era of tighter rules hasn’t come to an end? I guess by tighter rules they mean doing away with the most absurdist bubble policies in the form of zero down 40 year mortgages.
What’s next? Banks not being able to offload risk for mortgage lending?
Here’s the amazing bit for those just tuning in:
The Crown corporation has been offering insurance on second homes since 2005. It has been offering insurance to self-employed people without strong income validation since 2007.
Remember NINJA loans in the states? Good thing we never had those here!