The COVID-19 pandemic has taken a huge toll on the Canadian housing market, and the country’s largest insurer is now making it worse. CHMC has announced recent changes to its policies that make it more difficult for individuals with poor credit history to acquire homeowners insurance. Also, this debt-ratio policy will be worse for those that put less than 20% down on a home. Experts believe that this new policy will have a negative effect on the housing market, slashing the purchasing authority of homebuyers up to 12%.
- An insurer in Canada is making it harder to purchase home insurance in these troubled times.
- Read below for updates on CMHC’s new insurance policies and more.
- It’s suggested that it was a move by CMHC itself and not mandated by the government.
“Will CMHC drop its insurance premiums now that its loan book is getting less risky, unlikely, since it was not even mentioned.”