Good News, CMHC Competitors Decide Not to Tighten Rules, Maintain Home Shopping Affordability
In a news releases today Genworth Canada and Canada Guaranty have both confirmed that they will not follow suit with Canada’s main mortgage insurer, CMHC, in tightening lending guidelines for mortgages. Genworth MI Canada Inc. (TSX: MIC) said: “it has no plans to change its underwriting policy related to debt service ratio limits, minimum credit score and down payment requirements.” This is good news as there are varying opinions amongst experts as to the risk profile of the housing and mortgage market. At a time when Canada needs economic activity encouraged, the CMHC announcement the other day brought negative news to the markets. More importantly; home affordability will be maintained with CMHC’s competition not following along in tightening rules for mortgage default insurance, which is required when making less than a 20% down payment.
For full details from Genworth read here