CMHC reduces mortgage insurance offerings

Canada's federal housing agency will stop offering two types of mortgage insurance next month, in the latest move to curb its ballooning, taxpayer-backed mortgage insurance business and contribute to housing market stability, reports Reuters.

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.

CMHC will now only provide homeowner mortgage loan insurance to one property per borrower at a time. It will also require self-employed home buyers to provide proof of income from a third party, which the agency says is now readily available.

The two mortgage products represented less than 3 percent of CMHC's total insurance volumes in units.

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