May 21, 2020 Canada Mortgage & Housing Corp (CMHC) predicted that BC’s housing prices would fall 9-18% this year. That was met with a lot of skepticism by many.
Perhaps to support their prediction – on June 4th CMHC came up with a change to the qualification rules for high ratio buyers for properties under $1 million. – effectively reducing their purchasing power by 11%. This, most economists would tell you is the wrong thing to do during a recession.
Dustan Woodhouse of Mortgage Architects has a great explanation of this latest change.