If you are considering applying for a mortgage, and will have less than 20% down, you could be seriously affected by this - it could talk much longer to get your funding approval, or you may not get it at all.  The CMHC is running into a cap on how many mortgages they can insure.

In short, the Canadian Mortgage Housing Corporation is a government backed organization that ensures high ratio mortgages, those with less than 20% as a down payment.  The CMHC is capped by the federal government at $600 Billion liability.  They have put lenders on notice that they are nearing that cap and may slow down, or "ration" their insurance.  If this happens it will mean that some buyers will not be able to get mortgage insurance, or in a best case scenario, funding approval could take longer.  

This could make it much harder for buyers, predominantly first time buyers, to get a mortgage.  Considering that first time buyers accounted for over 50% of all home purchases in Victoria last year, this could have a negative impact on many sections of the market.

If you are planning on buying a home, and will have less than 20% down, you may want to make your purchase sooner rather than later to avoid the uncertainty that may be coming.

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