CMHC Mortgage Rules and Updates for 2025

Key 2025 Changes and Impacts on Mortgage Insurance

The Canada Mortgage and Housing Corporation (CMHC) updated several important mortgage insurance rules, effective December 15, 2024, with ongoing refinements in 2025. These changes are designed to improve affordability, encourage new construction, support long-term rentals, and adjust premium structures to market risks.

Increased Insured Mortgage Cap to $1.5 Million

The purchase price limit for CMHC-insured mortgages was increased from $1 million to $1.5 million.
Buyers can finance homes up to this new cap with a minimum 5% down payment on the first $500,000 and 10% on the portion above.
This update helps affordability in high-cost markets like Toronto, Vancouver, and Montreal by expanding coverage to more properties.

Longer Amortization Periods for Some Buyers

First-time homebuyers and buyers of newly built homes can qualify for 30-year amortizations, an increase from the earlier 25-year maximum.
Longer amortizations help reduce monthly payments and make entry to homeownership more affordable.

Revised Premiums and Multi-Unit Changes (July 14, 2025)

CMHC introduced a standardized premium approach for all multi-unit mortgage loan insurance (MU MLI) products.
Premium discounts will be offered based on social impact outcomes like affordability, accessibility, and energy efficiency.
Premium surcharges remain unchanged to address riskier loans, such as those with lower down payments or new construction projects.

Refinancing Rules Supporting Secondary Suites (Effective January 15, 2025)

New insured mortgage refinancing products now allow homeowners to borrow up to 90% of the property's value to finance adding secondary rental suites.
Eligibility conditions include municipal zoning compliance, long-term rental commitments, and property value limits under $2 million.

Other Important Requirements and Relaxations

Minimum credit score requirements lowered from 680 to 600 to broaden borrower access.
Ban on borrowing for down payments was maintained—borrowers must use their own or gifted funds.
Debt service ratios were adjusted, with Gross Debt Service (GDS) max increased to 39% and Total Debt Service (TDS) to 44% to accommodate higher borrowing power.
Only one CMHC-insured mortgage allowed per borrower at a time on owner-occupied properties.

Market Impacts and Outlook

These rules aim to balance affordability, risk management, and housing market stability. They offer Canadian homebuyers greater financing options and support builders and investors in creating rental supply critical for housing markets in major cities. Monitoring updates from CMHC helps planners and buyers stay ahead in the market.