Quote:
Originally Posted by albertGQ
CMHC does insure low ratio mortgages. Examples are properties in remote areas where most lenders would not approve conventionally. Also, CMHC has a rental offset formula which lowers an individual's TDSR significantly whereas most banks just add 50% of the rent towards income. They also have Newcomers to Canada, Self-Employed Simplified programs, etc that borrowers may only qualify under.
Regardless, that 41% number appears low. I'd guess it should be double that.
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Yeah, there are some more unusual cases that need insured mortgages as you've mentioned. Another example is homes under 500 sq ft.
Still, these situations are few and far between, so I would expect more traditional high ratio mortgages to represent way more than 41%.