Canada’s Mortgage Insurer Tightens Rules Effective July 1

Not good news. This will definitely contribute to retracting the housing market and lowering consumer affordability. Ottawa still believes that there is a housing bubble. We believe that this is being heavily influenced by the pandemic support handouts and the extra debt & risk that will result for the federal government because of it. They are afraid of a higher default rate on the mortgages that they insure, more than ever. The current default rate is less than one half of 1%. Read details of changes in this Financial Post article