review-starsFIVE STAR CUSTOMER SERVICE!
telephone +1 866 921 8890

Currently, banks and financial institutions decide who gets approved for a mortgage, yet it is the CMHC that takes on all the risk by insuring them. Homeowners who can’t make a 20% down payment have to be insured by the CMHC. This means that the banks are technically “offloading” that risk on the CMHC and by extension, the government and Canadian taxpayers.

Call Us Today +1 866 921 8890

Questions? We’re here to help!

img

Fund a TD Mortgage and You Can Get up to $2500 with a Purchase!

To learn more
contact us

You have question. We are here to help!

or


The second reason is that government wants to start procedures to slowly yet surely lessen their involvement in mortgages and home insurance across the board. There are a few reasons behind this move that is not as clear-cut or easy to explain. Firstly, the recent government interventions by tightening regulations and lending requirements didn’t really serve its goal of cooling the housing market.

The medium-term goal to lessen the CMHC’s involvement in the mortgage insurance industry is part of that shift.

What would be the result for ordinary Canadians?


It should be mentioned that there are as of yet no concrete plans to implement any solution to this shift. For now, it’s just an idea that the CMHC is trying to frame in a way that will work in the real world. As of now, they have already cut some of their support and products for mortgages on condominiums or on second home mortgages.

The Canadian finance department and the CMHC have proven time and again that they do not make these decisions hastily or haphazardly so it stands to reason to not expect any dramatic shifts anytime soon.

If this were to go through though, Canadians can expect a slight increase in their mortgage rates. This is because the banks and financial institutions themselves would now be taking on slightly more of that risk either by approving uninsured mortgages or by coming up some kind of mortgage products themselves.

In a best-case scenario, this “looser” industry would help the housing market cool down as well. Although this might be slightly hopeful. Currently, a concern is that liquidity in the economy is limited by the high housing costs as people have less spending power if they want to own a home.

However, we should always carry perspective. As of now, Canadians have, in general, a very good balance sheets in terms of their liabilities versus their assets. Canada also has very low levels of unemployment on a global scale. The current levels of around 7% are high for Canada but still means an overwhelming number of Canadians have jobs that can sustain them.

Google Reviews

Certified Mortgage Brokers
powered by
Afton Jaskolski
2020-12-30

Getting a private mortgage was not easy to be honest, but at least with Mr. Leon it was doable. Thank you for your help!

Davin Mills
2020-12-26

There are a lot of mortgage brokers in toronto to choose from, I was a bit intimidated by that. Don't regret I picked CMB, they took the lead and made sure to cover all the bases

Tracy Wilhoite
2020-11-21

I was renting an apartment for a long time and finally decided to take a big step - get a mortgage instead. Team at certified Mortgage Brokers laid out various options for me. The actual process went smooth and quick, happy with my new home.

Ryder Turcotte
2020-11-16

My wife and I decided to refinance our mortgage and started looking for a mortgage broker in Toronto. There were so many options, so you can imagine how overwhelmed we got! After talking to Leon we decided to proceed with Certified, didn't regret that decision once. They always gave useful recommendations, were attentive, and constantly in touch. And most importantly (for us) they helped us to save some money!!

Lucy Zimmerman
2020-11-11

Vita was great. Helped my son with all the paperwork and got him very good interest rate. On the closing date called to follow up if everything went fine. Quite a pleasant experience. I would recommend this firm for anyone who is looking a mortgage broker.

Contact Us