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Strict new mortgage rules kick in July 1

June 12, 2020

Canada Mortgage and Housing Corp.(CMHC), the largest insurer of residential mortgages in Canada, has tightened mortgage qualifications in a move expected to slow first-time home buying.

Canada’s national mortgage insurance provider unveiled the stricter underwriting policies for home buyers on June 4. The measures include limiting the gross debt service ratios on home buyer loans to 35 per cent, from 39 per cent and limiting the total debt service ratio to 42 per cent from 45 per cent.