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  • CMHC Tightens
  • CMHC TIGHTENS RULES

    June 5, 2020

    Starting July 1, 2020, CMHC is tightening its mortgage insurance underwriting and approval criteria. The maximum debt servicing ratio's drop, and the credit score requirements goes up.

    The changes are as follows:

    • The maximum gross debt service (GDS) ratio drops from 39% to 35%.
    • The maximum total debt servicing (TDS) ratio drops from 44% to 42%.
    • The minimum credit score requirement rises from 600 to 680 for at least one borrower.
    • Non-traditional sources of down payment that increases indebtedness will no longer be treated as equity for insurance purposes.

    Source: Mortgage Professionals Canada

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