Jun 19, 2020
The COVID-19 pandemic is affecting all sectors of Canada's economy, including housing. Job losses, business closures and a drop in immigration are adversely impacting Canada's housing markets, and CMHC foresees a 9% to 18% decrease in house prices over the next 12 months. In order to protect future home buyers and reduce risk, CMHC is changing its underwriting policies for insured mortgages.
One of the major change we see as being Real Estate Investors is CMHC will not permit equity takeout to distribute to equity holders. CMHC recommends to seek out for private lenders for this purpose.
Anyway, I don't want you to worry about it a lot as CMHC rules are changing all the time. Since Real Estate market hits hard only when there's significant downturn in economy as we've seen in 2008 financial crisis and now due to COVID-19 pandemic, other than that it's just an economic cycle.
Again if you need my help to answer your questions on your Real Estate Investments or you are skeptical to invest in Real Estate, reach out to me at