Canada’s two private-sector mortgage insurers have decided not to match all of Canada Mortgage and Housing Corp.’s recent product cuts, reports The Globe and Mail.
Genworth MI Canada sent a letter to banks saying that it will not be making any changes to its standards for self-employed borrowers.
Genworth will, however, tighten its rules for second homes slightly. As of May 30, it will only sell second-home mortgage insurance on homes with one unit in them, rather than two (such as duplexes or a self-enclosed apartment in a house).
Up until now, Genworth has been willing to insure second homes with two units, as long as one of those units was occupied by the mortgage holder or one of their immediate family members.
Canada Guaranty, the country’s third-largest mortgage insurer, is similarly limiting its second-home insurance to one unit, but not changing its rules for self-employed borrowers.