It has been a very busy start to the year and there is no sign of it letting up anytime soon. This is great news as changes in mortgage guidelines are expected. Last week it was announced that CMHC (Canadian Mortgage and Housing Corp) is rapidly approaching their $600 billion cap. The role of CMHC is to insure mortgages for the protection of lenders. Borrowers pay the CMHC premium on mortgages where there is less than 20% equity in the home, and the lender is insured in the case of default. CMHC is regulated by the federal government, and would therefore need federal permission to extend past their current cap of $600 billion. As a result, last week several lenders discontinued their self-employment and equity programs, where clients were able to qualify without income verification. These programs have been considered higher risk, despite the fact that the foreclosure average in Canada remains under 1%. Although some lenders have lost their appetite for self employed clients, many lenders are excitedly moving towards those products to pick up more market share.
If you are self employed, or have questions about possible industry changes, email or call me and I will be happy to review options with you.
All the best!
Jamie Moi, AMP
Dominion Lending Centres - West Coast Mortgages
Your mortgage consultant for life
604-534-6504
jamiemoi@jamiemoi.com
And don't forget to Like my Facebook page at
www.facebook.com/JamieMoiMortgageTeam.
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