CMHC has nearly run out of funds to insure mortgage so they are restricting access to this product at least for the rest of 2013. The steps taken thus far by the federal government and mortgage regulators have been not slowed the housing market sufficiently and way to many mortgages are insured by lenders who refuse to take on risk themselves. CMHC has said enough and notified lenders that access to insured mortgages will be limited; they have nearly hit the annual maximum allowance for insured mortgages in July. The lender are expected to pass the costs of limited access to insured mortgages onto the consumer. Expectations are that this move will increase fixed mortgage rates from 0.20% to 0.65% this summer.
Accredited Mortgage Professional