More changes in store for CMHC mortgage default insurance
Canada Mortgage and Housing Corp., the Crown corporation that controls the vast majority of mortgage default insurance in the country, says it plans to get out of the market for second homes and is adding restrictions for self-employed Canadians.
Effective May 30, 2014, the Canada Mortgage and Housing Corp. (CMHC) will be implementing changes to what their default mortgage insurance covers. The Crown corporation plans to discontinue insuring mortgages on second homes, and implement stricter guidelines for self-employed individuals.
Steven Mennill, senior vice-president of insurance said "CMHC helps Canadians meet their housing needs and contributes to the stability of the housing market and finance system. 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."