Changes for new applications for homeowner transactional and portfolio mortgage insurance, effective July 1.
Yesterday afternoon, CMHC announced changes to its mortgage insurance underwriting and acceptance criteria.
Effective July 1, the following changes will apply for new applications for homeowner transactional and portfolio mortgage insurance:
You can read the full release HERE
It is important for our members to note that this is a CMHC announcement, and as the release states: “These decisions are within CMHC’s authorities under the National Housing Act.” This is not a directive from the Ministry of Finance. As such, as Canada’s private mortgage insurers, Genworth’s and Canada Guaranty’s criteria is not directly affected. Early indications seem to suggest that the private insurers will not follow in lockstep with these changes, but each are currently determining their specific response. More details are expected early next week, and I anticipate some differentiation in risk appetites will create additional competition and a shift in market share over time.
We will keep you informed of additional details as they become clear.