CMHC Rule Changes Coming for July 2020
Here we go again, more changes to lending, this time the changes will affect high ratio mortgage insurance with CMHC. High ratio mortgages are anyone who is putting down less than 20% on their purchase price. GE (Genworth )and Canada Guaranty are both private mortgage insurance companies and will not be implementing the same changes at the time of this article, but we expect it would be likely to see them follow suit with the changes in the future as it will decrease their risk and exposure.
WHAT will change?
The new rules will lower the debt allowed for a homeowner to take on. So essentially...
Impact of COVID-19's on the Calgary housing market continues
In May, Calgary's housing market activity remained slow, though sales surpassed the lows from April, which saw fewer than 600 sales.
May sales totalled 1,080 units, a 44 percent decrease from last year's totals.
"The initial shock of COVID-19 and social distancing measure is starting to ease. This is bringing some buyers and sellers back to the market. However, this market continues to remain far from normal and prices are trending down," said CREB® chief economist Ann-Marie Lurie.
"Activity has also shifted toward more affordable product, which is likely causing differing trends depending on product type and price range."
Sales have declined in all price ranges, but a more significant percentage of sales are below $500,000.
The drop in inventory in the higher price ranges has not been enough in comparison to the decrease in sales. The months of supply is higher than the...