Covid-19 – CMHC tightens its criteria

By : Maryse Guénette

Canada Mortgage and Housing Corporation (CMHC) foresees that house prices will decline over the next 12 months. As a result, the Corporation is changing the criteria for accessing applications for underwriting homeowner transactional and portfolio mortgage insurance. Also, it is suspending refinancing for multi-unit mortgage insurance, except in certain cases. According to Evan Siddall, President and CEO of CMHC, these changes were made to protect homebuyers and “the economic futures of Canadians”. They will also promote “the stability of housing markets while curtailing excessive demand and unsustainable house price growth.”