On May 30 the Canadian Mortgage and Housing Corporation says that as of May 30 it will be tightening mortgage insurance. It will not offer insurance for self-employed workers without proof of income, and it will not offer insurance for those purchasing a second property (investors included).
This move is estimated to affect less than three per cent of the units it insures. And it is meant to support stability in the housing market says CMHC in a statement. Like earlier moves, it will help temper excessive speculation in the housing market. Earlier this year CMHC announced that it is increasing its mortgage loan insurance premiums for investors who will hold between one and four rental units.
The premium increase of about 15 per cent for all loan-to-value ranges applies to owner occupied and self-employed homeowners and comes into effect on May 1.
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