We’ve heard a lot lately of the new CMHC mortgage changes for qualifying buyers. These changes to policies could result in buyers qualifying for 20% less value in their home searches.
As well, I believe this will have several effects not readily recognized.
For example, the part of the policy changed little discussed is passing on some of the risk to lenders. CMHC is saying lenders need to share the mortgage default risk along with the government. At ﬁrst glance this may sound good for us. However, risk is calculated in cost and to that end cost is usually transferred to customers like you and me.
So, we can probably expect higher borrowing rates for our loans in the coming months. Who really wins in this scenario, frankly nobody!