The government-backed Canada Mortgage and Housing Corp said on Thursday it would tighten rules for offering mortgage insurance from July 1, after forecasting declines of between 9 and 18 per cent in home prices over the next 12 months. The move would make it harder for riskier borrowers, who offer downpayments of less than 20 per cent to access CMHC's default mortgage insurance. CMHC is establishing a minimum credit score of 680 instead of the current 600, the group said in an emailed statement. The measures will help curtail "excessive demand and unsustainable house price growth," CMHC CEO Evan Siddall said in the statement. CMHC is the top mortgage insurer, while Genworth MI Canada and other private companies also provide similar products.

Source: CBC News June 05, 2020 15:21 UTC