June 22 2020
During the month of June, the Canadian Mortgage and Housing Corporation (CMHC) announced they will be adjusting the rules for insured mortgages as of July 1 due to the economic downturn caused by COVID-19. Learn more about what happened this past month and how these new rules will affect Canadians.
On June 4, the CMHC announced their decision to change their underwriting policies for insured mortgages due to the economic impact of COVID-19 and the outlook that Canadian housing prices may decline.
After the CMHC announced their plans to tighten rules for insured mortgages, competitors such as Genworth and Canada Guaranty confirmed shortly after that they would not be following through with these policy changes.
CEO and co-founder Jesse Abrams walks through Homewise’s online process and how the company’s infrastructure has been able to support mortgage clients efficiently with no delays during the pandemic.
Over the last four months, COVID-19 has impacted the Canadian economy by significantly increasing levels of unemployment, which has now caused interest rates to fall to its lowest levels in history.
With the world reopening and economic restrictions easing, the month of June has left the Canadian government quite optimistic about the housing market. Warmer weather has brought rising home prices, but what does this mean for homeowners and buyers? Check out the latest in mortgage news to learn more:
The Bank of Canada expects the Canadian economy to rebound strongly starting this summer, led by consumer spending as the pace of vaccinations speeds up and provincial governments begin to ease restrictions.
With historically low mortgage rates, a race for more living space and an urge to get into the market ahead of tougher borrowing rules, home prices across Canada continue to rise. Housing experts express that when the borders reopen to immigration, a fresh wave of demand may heat up prices even more.
This month, Education Minister Stephen Lecce announced that Ontario schools will begin to teach financial literacy in Grade 9 math courses. This new curriculum is planned to teach students how to successfully apply for a mortgage and manage their finances – a positive step in preparing youth for this future milestone investment that will hopefully inspire other provinces to follow suit.
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