Talk Toronto Real Estate - Podcast with Umesh Uppal

3 Changes in Mortgage Qualification Guidelines from CMHC as of July 1, 2020

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Effective July 1, the following changes will apply for new applications for homeowner transactional and portfolio mortgage insurance:

  • Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to the standard requirements of 35/42;
  • Establish a minimum credit score of 680 for at least one borrower; and
  • Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.

    • If you want to buy a home and have less than 20% downpayment, now is the time to have yourself pre-approved for Mortgage as qualification criteria are becoming stringent effective July 1, 2020.

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    Talk Toronto Real Estate - Podcast with Umesh UppalBy umeshuppal