The Canadian government made changes to the approval process effective October 17th, 2016, for buyers who have less than a 20% down payment. These buyers are now required to qualify under higher interest rates than previously. We have created a short video to explain the new mortgage rules as they pertain to CMHC, and other loan insurers in Canada. Here is the video:
It remains to be seen as to what effect this will have on our booming Canadian real estate market, but for high-ratio buyers, they will now qualify for about 20% less than they did prior to October 17.