What You Need to Know About Canada’s New Mortgage Rules
Posted by Terry Paranych on
Effective July 1st, 2020, the Canada Mortgage and Housing Corporation (CMHC) is expected to tighten requirements surrounding insured mortgages. How will the changes affect home buyers and the Edmonton real estate market? Here’s what to expect:
What Are the Changes and Why?
According to officials, COVID 19 has made Canada’s financial markets more vulnerable and, as a result, measures must be taken to protect the economy. Specific measures include:
1. Increasing the minimum credit score to qualify for a mortgage from 600 to 680 (for at least one borrower).
2. Limiting the Gross Debt Service Ratio (GDS) from the standard 39% annual income to 35%.
*Your GDS Ratio is the percentage of income required to pay all monthly housing-related costs…
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