Skip to content
CMHC Home Canada Mortgage
and Housing Corporation
  • Sign In or Register
  • FRANÇAIS
  • MENU
MENU
× FRANÇAIS
  • Home
  • Professionals
    • Project funding and mortgage financing
      • Funding programs
        • Affordable Housing Innovation Fund
        • Community (social) housing
        • Federal Lands Initiative
        • Funding for Indigenous housing
        • Housing Supply Challenge
        • Innovation and research
        • National Housing Co-Investment Funding
        • National Housing Strategy Project Profiles
        • Rapid Housing Initiative
        • Rental Construction Financing Initiative
        • Shared Equity Mortgage Providers Fund
      • Mortgage loan insurance
        • Homeowner and small rental mortgage loan insurance
          • Eco Programs for Lenders
        • Homeowner Business Transformation (HBT)
          • Arrears Report Upload Tool
          • Default Management Request Submission Tool
          • Homeowner Claims Submission Tool
          • User Access Management (Coming Soon)
        • Multi-unit mortgage loan insurance
          • MLI Select
        • Default, claims and properties for sale
        • Underwriting centre
        • emili
        • NHA approved lenders
        • Calculating GDS / TDS
        • How to recognize and report mortgage fraud
        • Contact mortgage loan insurance
        • Insured Mortgage Purchase Program (IMPP)
        • COVID-19: CECRA for small businesses has ended
      • Securitization
        • NHA Mortgage Backed Securities
        • Canada Mortgage Bonds
        • Canadian registered covered bonds
        • Blockchain in the housing industry
    • Housing markets, data and research
      • CMHC Reports Calendar
      • Housing markets
        • Housing market reports
        • Mortgage market and consumer reports
      • Housing research
        • Consultations
          • Prohibition on the Purchase of Residential Property by Non-Canadians Act
            • Prohibition on the Purchase of Residential Property by Non-Canadians Act – Frequently asked questions
        • Housing research reports
        • Housing surveys
        • Research awards and scholarships
        • Understanding core housing need
        • Collaborative Housing Research Network
      • Housing data
        • Data tables
          • Household characteristics data
          • Housing market data
          • Mortgage and debt data
          • Rental market data
        • Housing market information portal
        • Residential Mortgage Industry Data Dashboard
        • Housing in Canada Online (HiCO)
        • CMHC licence agreement for the use of data
        • Housing Knowledge Centre
    • Industry innovation and leadership
      • Housing innovation
      • Our Partners
        • Partnerships
        • Federal, Provincial and Territorial Forum on Housing
          • Resources for Members of the Federal, Provincial and Territorial Forum on Housing
      • Industry collaboration
      • Industry expertise
        • Affordable housing
        • Indigenous housing
        • Senior housing
        • Accessible and adaptable housing
          • Universal Design Guide
        • Developing sustainable housing
        • Resources for mortgage professionals
        • CMHC newsletters
    • Events and speakers
      • Conferences
      • Speakers’ bureau
        • Kevin Hughes
  • Consumers
    • Buying a home
      • Homebuying calculators
        • Mortgage calculator
        • Affordability calculator
        • Debt service calculator
      • Buying guides
        • Homebuying step by step
        • CMHC's condominium buyer's guide
      • Mortgage loan insurance for consumers
        • What is CMHC mortgage loan insurance?
        • Do I qualify for mortgage loan insurance?
        • CMHC mortgage loan insurance costs
        • CMHC's Eco Programs
          • CMHC’s Eco Improvement
          • CMHC Eco Plus
        • CMHC — home renovation financing options
        • FAQs — mortgage loan insurance
        • COVID-19: understanding mortgage payment deferral
      • First-time home buyer incentive
      • Incentives for homebuyers
      • Newcomers
    • Owning a home
      • Manage your mortgage
        • Mortgage fraud
        • Mortgage planning tips
        • Plan and manage your mortgage
        • Your credit report
        • Your home value
      • Aging in place
        • Housing options for Seniors
        • Housing and finance tips
        • Mortgage financing options for people 55+
        • Preventing fraud and financial abuse
    • Renting a home
      • I want to rent
        • Things to consider before renting
        • Types of housing for rent in Canada
        • Finding or advertising a rental property
        • Visiting the rental property
        • Lease and rental agreements
        • Signing the lease
        • Credit checks and bad credit
        • Rental payments and deposits
        • Roommates and pets
      • I am renting
        • Moving day
        • Landlord/Tenant responsibilities
        • Inspections
        • Maintenance and repairs
        • Complaints and evictions
        • Rent increases
        • When you can't pay rent
        • Renewing or terminating the lease
        • Moving out
      • One-Time Top-Up to the Canada Housing Benefit
      • COVID‑19: eviction bans and suspensions to support renters
  • About CMHC
    • Management and governance
      • Speakers’ bureau
      • CMHC's 2023 Annual Public Meeting
      • CMHC’s board of directors and committees
      • Our management committee
      • Pension governance
        • Pension overview
        • Key roles and responsibilities
        • Annual reports
    • Corporate reporting
      • CMHC’s 2022 Annual Report
      • Program evaluation
      • Quarterly financial reports
      • Joint auditors special examination report to CMHC board 2018
      • CMHC’s Insured Mortgage Deferral
      • Summary of the corporate plan
      • Transparency
        • Access to information and privacy protection
        • Accessibility at CMHC
        • Accessibility feedback process
        • Briefing materials
        • Procurement
          • Vendor Diversity Program
        • Travel, hospitality and conference expenditures
    • Contact us
      • CMHC departments
        • Contact your multi-unit housing solutions specialist
        • Contact mortgage loan insurance
        • Indigenous and the North Housing Solutions
      • Granville lsland
      • Media relations
      • National office
      • Regional offices
      • Holiday service hours
    • Discover Life at CMHC
  • Media Newsroom
    • Coronavirus (COVID-19) updates
    • Media relations
  • National Housing Strategy
    • What is the strategy?
      • About the initiatives
      • How to apply
      • Help and resources
      • Priority areas for action
      • The National Housing Strategy Glossary of Common Terms
      • The Strategy in Action
    • Federal/Provincial/Territorial housing agreements
    • Other funding and financing opportunities
  • The Housing Observer
  • Careers
  • Housing Knowledge Centre
 
  • Home
  • Professionals
  • Project funding and mortgage financing
  • Mortgage loan insurance
  • Homeowner and small rental mortgage loan insurance
  • New government guarantee parameters
  • Save page to My Folder
    Save
  • Share this page
    Share

Government guarantee parameters

For 1-4 Unit properties.

Save Icon

SAVE TO MY FOLDER

Government guarantee parameters

SAVE
Close this Window   |   Manage my Folder
Save Icon

SAVE TO MY FOLDER

Government guarantee parameters

Done Done!
Close this Window   |   Manage my Folder
Share icon

Share via

  • Facebook
  • LinkedIn
  • Mail
  • print
  • CopyLink

SuccessCopyLinkVersionLink copied

Share icon

Share via

  • Facebook
  • LinkedIn
  • Mail
  • print
  • CopyLink

SuccessCopyLinkVersionLink copied

share icon

Mail-blue Share via Email

Did You Know?

You can include an email signature?

Register | Sign In

×
Google Captcha Loader
share icon

Mail-blue Share via Email

Done Done!
Close this window

Effective July 5, 2021, the following changes will apply for new applications for homeowner transactional and portfolio mortgage insurance:

  • Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to our standard requirements of 39/44;
  • Establish minimum credit score of 600 for at least one borrower; and
  • Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.

For CMHC-insured mortgages, these new criteria will take precedence over the Government of Canada's mortgage insurance guarantee parameters below.

This is the second information update implementing new parameters for mortgage loan insurance announced by the Government of Canada on October 3 and updated on October 14, 2016.

The earlier update dealt with the application of the Mortgage Rate Stress Test applicable to high ratio loans. This information update deals with new eligibility criteria for low ratio loans where the loan-to-value ratio is 80% or less.

Eligibility Requirements where the Loan-to-Value Ratio is 80% or Less

Effective November 30, 2016, transactional low ratio loans must meet seven new eligibility requirements. The additional requirements are as follows:

Loan Purpose Purchase of a residential property. No Refinance.
Maximum Amortization 25 years from when the loan was originally made
Maximum Purchase Price Less than $1,000,000
Variable Rate Loans For variable-rate loans that allow fluctuations in the amortization period, loan payments that are recalculated at least once every five years to conform to the established amortization schedule.
Credit Score At least one borrower (or guarantor) must have a minimum credit score of 600.
Debt Service Ratios (GDS/TDS) Max 39% / 44% calculated by applying the greater of the mortgage contract rate +2% or the Bank of Canada conventional five-year fixed posted rate.
Occupancy If the property is a single unit, it will be owner occupied.

The eligibility requirements also apply to transactional low ratio loans received by CMHC before November 30, 2016. To determine if the new low ratio eligibility requirements apply, please refer to the table below:

Before October 17 New eligibility requirements do not apply where one of the following applies:
  • CMHC received an application to insure the loan; or
  • The lender had already made the loan or made legally binding commitment to make the loan; or
  • The borrower entered into a legally binding agreement of purchase or sale for the property against which the loan will be secured.
October 17 to November 29 New eligibility requirements do not apply if one of the three above criteria is met and the loan is funded before May 1, 2017.

If the loan is to be first funded on or after May 1, 2017, the new eligibility requirements apply.
November 30 onwards The new eligibility criteria apply.

Was this page relevant to your needs?

Thank you for your feedback!

Sorry to hear that! Can you tell us about the problem?

Google Captcha Loader

For further assistance, please contact us

Thank you. Your feedback has been submitted.

Date Published: March 31, 2018

By Topic

  • Professionals
    • Project funding and mortgage financing
    • Housing markets data and research
    • Industry innovation and leadership
    • Events and speakers
  • Consumers
    • Home buying
    • Owning a home
    • Renting a home

About Us

  • CMHC's Story
  • Management and Governance
  • Our Partners
  • Corporate Reporting
  • Contact Us
  • Careers

More

  • CMHC Newsletters
  • CMHC Library
  • Housing Observer
  • Media Newsroom
  • CMHC on Twitter
  • CMHC on LinkedIn
  • CMHC on Facebook
  • CMHC on Instagram
  • CMHC on YouTube
Privacy Policy    |    Terms and Conditions    |    Transparency    |    Accessibility Plan    |    Accessibility Feedback     Canada Mortgage and Housing Corporation (CMHC) ©2023 
Canada
loader icon