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With reference to this question, how does this affect the Canadian Home and Mortgage Corporation (CMHC)? This organization made it possible to get a new home with as little as 5% downpayment, essentially insuring the borrower in case of default. Will this change with the new rules?

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Banks will still require CMHC insurance on loans that exceed a certain amount of the property's value (currently 80%). However, the new rules will mean that even if you get CMHC, you must put down at least 10% for a principal residence, and 20% for a rental property. The qualification rule change doesn't really have anything to do with CMHC, it's just a new standard for how the banks calculate your debt-to-income ratio.

  • Would first-time buyers still be able to put 5% down? – Chris W. Rea Apr 23 '10 at 14:47
  • Yes, I believe the 5% still applies to first time home buyers. – Cart Jun 21 '10 at 17:39

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