COVID-19 initiates a change with CMHC’s underwriting

• June 5, 2020
• /
• Newsworthy

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:

• The maximum gross debt service (GDS) ratio drops from 39 to 35
• The maximum total debt service (TDS) ratio drops from 44 to 42
• The minimum credit score rises from 600 to 680 for at least one borrower
• Non-traditional sources of downpayment that increase indebtedness will no longer be treated as equity for insurance purposes

You can read the full release HERE.