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No Changes to Canada Guaranty's Underwriting Policy

by Mortgage Professionals Canada | Jun 09, 2020
The company confirmed that no changes to it's underwriting policy are contemplated as a result of recent industry announcements.

 

Canada Guaranty confirms that no changes to underwriting policy are contemplated as a result of recent industry announcements.

"Canada Guaranty utilizes a dynamic underwriting process where our underwriting policies are consistently updated to reflect evolving economic environments and emerging mortgage default patterns. This philosophy has resulted in the lowest loss ratio in the industry. Recent insurer announcements relating to down payment and minimum credit score represent a very small component of Canada Guaranty’s business, and we will continue to be prudent in these areas. Given implementation of the qualifying stress test and historic default patterns, Canada Guaranty does not anticipate borrower debt service ratios at time of origination to be a significant predictor of mortgage defaults."

Read official release posted HERE.