Thursday, October 16, 2025

CMHC Urges Private Mortgage Issuers to Observe New Rule Changes on Borrowing Requirements

Canada’s housing authority has recently released a statement urging the country’s private mortgage lenders to refrain from issuing loans to what are now considered risky borrowers.

Back in June, the Canada Mortgage and Housing Corp (CMHC) announced that as of July 1, the eligibility criteria for potential mortgage borrowers will be tightened in response to the negative economic impacts stemming from the coronavirus pandemic. Now, in order to qualify for a mortgage, the borrower will need to have a higher minimum credit score, as well as a reduced debt burden. With the tightened measures, the CMHC aims to decrease taxpayer risk while shielding new home owners from a drop in house prices.

However, CMHC’s plan did not go as intended, as many private lenders such as Canada Guaranty Mortgage Insurance Co. and Genworth MI Canada Inc. took upon the opportunity to fill the demand gap. As a result, CMHC has lost a sizeable portion of the market share, and is now urging its private-sector competitors to observe the new rule changes.

According to the CMHC chief executive officer Evan Siddall, the decision to tighten lending rules comes amid concerns rising from the increased volatility of Canada’s housing market. The record-low interest rates coupled with an increase in new listings is creating a risky trend among borrowers and private lenders that could potentially draw out the economic recovery even longer. Siddall urges the private mortgage issuers to take the long-term macroeconomic vulnerabilities into strong consideration, rather than short-term profitability.

Information for this briefing was found via CMHC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

OSFI Looks To Tighten Mortgage Underwriting Rules, Opens Public Consultation

The Office of the Superintendent of Financial Institutions (OSFI) launched a public consultation of Guideline...

Friday, January 13, 2023, 12:37:00 PM

Existing Home Sales Fall by 9.7% in May, Third Consecutive Month of Declines Amid Coronavirus Pandemic

The month of May saw the lowest number of previously owned US home sales since...

Tuesday, June 23, 2020, 05:47:00 PM

Rising Rates Globally Set To Hit Spain, Australia, Canada The Hardest

Many corners of the financial and investing world are grappling with challenges that were not...

Saturday, September 17, 2022, 09:00:00 AM

CMHC Rings Alarm on Canada’s Deteriorating Housing Affordability

Canada Mortgage and Housing Corporation (CMHC) chief economist Bob Dugan expressed concerns over the deteriorating...

Monday, June 19, 2023, 04:11:08 PM

US House Down Payments Skyrocket by 69% to 20-Year High as Banks Tighten Lending Terms

As home prices in the suburbs and rural regions across America soar to record-highs propelled...

Saturday, November 28, 2020, 03:30:00 PM