MORE SHENANIGANS AT CMHC
CMHC’s NEW UNDERWRITING CRITERIA: What Changed and What it Means for Home Buyers The Canadian Mortgage and Housing Corporation (CMHC) has implemented new underwriting criteria (eligibility requirements) to apply for homeowner transactional and portfolio mortgage insurance. Introduced earlier this summer, these new adjustments from CMHC come as a precaution while the COVID-19 pandemic continues to impact consumers in the real estate market and many other aspects of day-to-day life. The following changes have been made: The maximum Gross Debt Service (GDS) ratio is now 35% with no exceptions ( previously, 39% GDS ratios could be approved under special circumstances ). The maximum Total Debt Service (TDS) ratio is now 42% with no exceptions ( previously, 44% TDS ratios could be approved under special circumstances ). The minimum credit score required for at least one borrower is now 680 ( previously 600 ). Non-traditional sources for down payments that increase indebtedness will no lo