As you are aware, on October 3rd, Finance Minister Morneau announced a tightening of rules on mortgage insurance.

CHBA is concerned that these new rules go too far, and will harm markets that are already challenged while doing little to address the ongoing supply pressures evident in stronger markets. We are also concerned that these changes will disproportionately affect first-time homebuyers working hard to achieve home ownership.

Going forward we will continue to press the government to rethink their approach and recognize the need for a more constructive approach to addressing lender and insurer risks.

In the short-term, after reviewing the changes carefully, CHBA informed the government that some details included in the October 3rd rule changes were flawed. We have been actively pushing the Department of Finance to address these flaws quickly. Specifically, some elements of the new rules were creating uncertainty for builders, and buyers, with signed deals for homes to be delivered many months or years in the future.

Late on Friday, October 14th, we were informed that a number of our recommended changes were being made, and an updated Technical Backgrounder reflecting these changes is now available on the Department of Finance website.

We want to make sure you are aware of these latest changes. Please review the Department’s Technical Backgrounder for complete details.
A quick summary of key changes made on Friday are as follows:

It is good that the Department recognized the specific flaws in the rules announced October 3rd, as pointed out by CHBA, and has taken action to correct them.


Longer-term, these changes do not address the larger underlying challenges that these new rules will cause—locking even more first-time buyers out of home ownership and potentially destabilizing impacts in many housing markets across Canada. CHBA continues to engage the government accordingly.