Massive decrease in insured Mortgage Market is 'New Norm' - CMHC
anada’s national housing agency has announced that the 47% decline in the country’s insured mortgage market year-over-year in the third quarter is the “new normal level.” The Canada Mortgage and Housing Corporation said in its latest financial report that it provided mortgage loan insurance to 67,915 units for the three-month period ending September 30 compared to 127,991 units during the same period a year ago. Steve Mennill, CMHC’s senior vice-president of insurance, said that decreased volumes have been steady throughout the year as a result of the new mortgage rules announced by the federal government in Q4 2016. The rules require all home buyers with less than a 20% per cent down payment to undergo a stress test to ensure the borrower can still service their loan should interest rates rise, or their personal finances fall. This cut into the purchasing power of some first-time homebuyers.
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