The Canadian Mortgage and Housing Corporation (CMHC) announced it is axing two of its insurance programs, indicating that the era of rule tightening isn’t quite over.
Effective May 30, 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” said CMHC's Steven Mennill, Senior Vice-President, Insurance, in the 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.”
According to the crown corporation, these two programs account for only three per cent of CMHC’s insured business volume.
