The Canada Mortgage and Housing Corporation (CMHC) has completed its review of the homeowner and multi-unit mortgage loan insurance business and has made two changes. They include:

• Mortgage loan insurance for the financing of multi-unit condominium construction will be discontinued, effective immediately
• The CMHC will align its low-ratio transactional mortgage loan insurance product with its high-ratio product by establishing maximum house prices, amortization periods and debt servicing ratios, effective July 31

Mortgage loan insurance for homebuyers wishing to purchase a condominium is unaffected by these changes. Announced on June 6, the adjustments are aligned with plans set out by the Canadian government in the Economic Action Plan 2014 to restrain growth of taxpayer-backed mortgage insurance.

“CMHC helps Canadians meet their housing needs and contributes to the stability of the housing market and finance system,” said Steven Mennill, Senior Vice-President, Insurance. “The changes announced as part of the review ensure that CMHC’s products and services are aligned with these objectives.”