cmhc insurance Photo: Dan Moyle/Flickr

The Canada Mortgage and Housing Corporation (CMHC) announced on Friday that it will no longer offer mortgage insurance on second homes and will require self-employed people to provide third-party income validation before they can be insured.

Considering their limited use, the CMHC doesn’t expect the discontinuation of these products to have a significant impact on the Canadian housing market. However, there are several fairly common scenarios in which people will find they’re no longer eligible for CMHC mortgage insurance after May 30th, the date when the Crown corporation officially discontinues the products.

Speaking to Tara Perkins of The Globe and Mail, Drew Donaldson of Safebridge Financial Group said that people who own a condo and decide to rent it out when they buy a house will no longer be able to buy that house with a CMHC-insured mortgage.

The CMHC’s decision has been the talk of the real estate town on Twitter since it was announced on Friday. Here’s what some tweeters had to say about the announcement:

 

 

 

 

 

 

 

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