After a period of particularly strong housing market conditions fueled by low interest rates and good consumer balance sheets during the Coronavirus Disease (COVID-19) pandemic, signs of weakness have emerged, led by lower home prices and reduced sales activity since March 2022. Canada's mortgage insurers have benefitted from favourable housing market conditions allowing them to achieve strong profitability ratios in 2021, in some cases the highest on record. Key highlights include: -- Since t...
This commentary discusses how Canadian Housing and Mortgage Corporation’s (CMHC) recently announced changes to its underwriting requirements may make purchasing a home more challenging for insured borrowers, primarily first-time homebuyers.
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