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The crown corporation Canada Mortgage and Housing Corporation will stop insuring mortgages for second homes starting May 30.
In Canada, home buyers who put less than 20% down payment will be required to register for mortgage insurance. This change also means that self-employed individuals who want to keep their mortgage insurance will have to submit standard documents to prove their source of income (need 2 years of tax filings and as well personal notice of assessments).
The CMHC has hinted at more upcoming changes in the future. The aim, as they put it, is to [reduce taxpayers’ exposure to risk].
Read the rest of the article at The Global and Mail – CMHC Tightens Mortgage Insurance Offerings, April 25, 2014
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