Canada Housing Agency Reduces Mortgage Insurance Offerings

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Ottawa: Canada’s federal housing agency will stop offering two types of mortgage insurance beginning next month. The latest move is to curb taxpayer-backed mortgage insurance business and contribute to housing market stability.
Canada Mortgage and Housing Corporation (CMHC) will discontinue its current mortgage loan insurance for borrowers who purchase a second owner-occupied home and for self-employed workers who cannot provide independent validation of their income. Both products will no longer be available as of May 30. “As a result of changes to CMHC’s mandate to contribute to the stability of the housing market, benefiting all Canadians, while effectively managing and reducing taxpayers’ exposure to risk, CMHC is undertaking a review of its mortgage loan insurance business,” the agency said in a statement.