Last week CMHC made the following changes and will apply for new applications.
- Maximum GDS (Gross Debt Servicing) decreased from 39% to 35%
- Maximum TDS (Total Debt Servicing) decreased from 44% to 42%
- Minimum credit score of 680 for at least 1 borrower
- Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.
So far these changes affect only insured mortgages (less than 20% down) with CMHC and we have not heard from Canada Guarantee or Genworth as of yet to see if they will follow suit.
Please let us know if you have any questions.