First time home buyers are fucked: CMHC tightening rules
“We expect values to drop” yeah! Doing this will help that prediction come true! Cause after a global economic catastrophe what we need is to cool the market even more, by limiting even more entry into it than say... laying off half the workforce for 3 months will naturally do
Benchmark qualifying was put in place for this reason, they allllllmost reversed that and now they are doubling down by also decreasing GDS by 4%, not TDS... cause you know... consumer debt keeps the world spinning... but GDS. so no matter how fiscally responsible you have proven to be, you too can also feel the hurt.
“Oh well, if you don’t have 20% down you shouldn’t be extending yourself anyways” ...well! Guess what? CMHC also does bulk portfolio insurance and you better believe these new ratios will be for almost everyone... well, unless you are cool with the premium on uninsurable loans. You’d also be surprised how many people have gifted down payments too... all this equals is a smaller customer pool... less demand... more supply... yup, good work
https://www.bnnbloomberg.ca/housing-...turn-1.1445837