Effective May 30, 2014 the Crown Corporation will no longer insure second homes and self-employed individuals who do not have third party income validation.
“CMHC helps Canadians meet their housing needs and contributes to the stability of the housing market and finance system” Steven Mennill, Senior Vice-President, Insurance with CMHC says in an official release. “As part of the review of its mortgage loan insurance business, CMHC is evaluating its products and services to ensure they are aligned with these objectives.”
According to CMHC, this is the first set of changes to come out of a review.
“As a result of changes to CMHC’s mandate to contribute to the stability of the housing market, benefitting all Canadians, while effectively managing and reducing taxpayers’ exposure to risk, CMHC is undertaking a review of its mortgage loan insurance business,” the release states. “This is the first set of changes resulting from this review.”
These two programs account for only three per cent of CMHC’s insured business volume, according to the release.
CMHC cutbacks announced
The Canadian Mortgage and Housing Corporation (CMHC) announced Friday it is axing two of its insurance programs, signalling to brokers that the era of rule tightening isn’t quite over.