Since 2008, the federal government has made several changes to the rules for mortgages insured through the Canada Mortgage and Housing Corporation (CMHC) and other private sector mortgage insurance providers. These rules affect home buyers with less than a 20 per cent down payment, which include many first-time home buyers in Canada.
The changes include the following:
The maximum amortization period has been reduced to 25 years from 40 years.
Home buyers must have a down payment of at least five per cent of the home purchase price and st...