April 4, 2012 - CMHC is going to TIGHTEN lending requirements soon! If you need a CMHC mortgage (i.e. you are putting down less than 20%) you need to buy your property ASAP!
Here is why I say this:
CMHC's insurance-in-force limit is $600 billion. CMHC insures about 45 to 50 billion a year. If the ceiling is not raised, CMHC will run out of insurance room.
I seriously doubt that the Canadian Government will increase the limit due to the current economy (CMHC mortgages are backed by the taxpayer [i.e. you and me] which means the Canadian Government sets the limit).
CMHC is going to have to tighten its lending rules simply because they will be able to do fewer and fewer deals as it is a relatively short time away from its ceiling.
The time of easy money is nearing an end! If you don't get in soon you may be passing a rental lease down to your kids instead of a title on a house! If you are trying to buy an investment property, run don't walk to your nearest real estate office because that will be even harder to do under the new rules that are about to be imposed.
You don't wait to buy real estate, you buy real estate and wait!
Lake Okanagan Realty