The Minister of Finance of Canada has made some re-adjustments concerning governmental mortgage loan guarantees in order to strengthen the Canadian mortgage sector. The problems with real estate loans of our southern neighbours have influenced the Canadian Government.
The CMHC supports, of course, the new parameters and the sustained efforts of the Government to maintain the solidity of the Canadian housing sector.
So, since the 15th of October 2008, the Canadian Mortgage and Housing Corporation (CMHC) does not insure mortgage loans assorted with paying-off periods of 40 years or at loan-value ratio of a 100 % anymore. Mortgage loans insured before this date are valid for the duration of the loan.
However, the CMHC shall continue to insure mortgage loans assorted with paying-off periods of 35 years maximum or at a loan-value ratio of 95 % at the most.