CMHC wants to make mortgage insurance accessible to immigrants and entrepreneurs
October 8 2017 Posted by Gurpartap (Gary) Bhutta
The Canada Mortgage and Housing Corporation’s CEO, Evan Siddall, shared with the media this week that the organization is exploring options to make it easier for immigrants and entrepreneurs to qualify for mortgage insurance. Siddall commented that, under current rules, homebuyers applying for mortgage insurance have to document their income to a level of detail that discriminates against people with gaps in their employment.
The CMHC is is looking into ways to manage the increased risk that comes with providing insurance to these groups. They’re considering modifying the standards for income documentation. Applicants will also likely be required to pay higher premiums. Any changes to the current rules are expected to be announced in the next 6 months.
Are Toronto residents thriving or just surviving?
According to the Toronto Star there’s more evidence pointing to the latter. A report by the Wellesley Institute says that the cost of thriving in the Greater Toronto Area for a single person aged 25-40 is between $46,186 and $55,432 after tax ($57,000 or higher pre-tax). For a minimum wage earner in Toronto, this figure is more than double of what they would make annually.
What does it mean to “thrive” in a city? Researchers note that thriving is defined as being able to afford goods and services that contribute to long-term positive mental and physical health. This includes transportation, personal care, healthcare and professional development costs.