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July 1, 2020 - New CMHC rule changes

Blog by Diane Cardoso | June 15th, 2020

Effective July 1, 2020, CMHC will be implementing the following rule changes for mortgage insurance and Buyers under 20% downpayment:

Income to debt ratios will be REDUCED from the following:

  • Gross debt servicing from 39% to 35%
  • Total debt servicing ratio from 44% to 42%


The reduction in debt ratios (maximum you can spend of your income on a home) has the potential to lower your affordability by over 10%

 Minimum credit score is being INCREASED from 600 to 680

 Non-traditional sources of down payment which will increase indebtedness will no longer be treated as equity for insurance purposes (i.e. using a secured line of credit for a down payment)

courtesy:  Kelly Hudson Mortgages