Friday, May 23, 2014

CMHC Rule Changes for Second Homes

Effective May 30,2014 CMHC rule changes for second homes take effect.  CMHC introduced the second home product in 2005 to offer borrowers more financing options when purchasing an owner-occupied second home located anywhere in Canada.  The recent changes will limit the availability of homeowner mortgage loan insurance to only one property (1-4) units per borrower or co-borrower at any given time.
Therefore any homeowners wishing to purchase a second property and require mortgage loan insurance will be unable to do so unless they refinance their existing home into a conventional mortgage.
These changes will not impact the number of rental properties currently owned with previous mortgage loan insurance in place through CMHC.