Recently the Canadian government announced its intention to change some to the rules as it relates to your ability to qualify for high ratio insurance.

High ratio insurance is offered by the Canadian Mortgage and Housing Corporation (CMHC) and is the reason that Canadians are able to purchase homes with as little as 5% down payment.

If you qualify, CMHC will provide default insurance to your bank which will enable you to qualify for financing with a smaller down payment than that of a conventional mortgage. They key is that you must qualify. CMHC has strict guidelines and applicants must have good credit, low debt service ratios, good stability and provable income, just to name a few of the pre-requisites. True Assess is the only online service that offers an online tool that grades a consumer's complete financial profile using CMHC lending criteria which makes planning for a mortgage much easier www.trueassess.com.

Canada's high ratio insurance system is the Cadillac and the primary reason that we didn't see the level of disaster in the real-estate market that our friends south of the border have experienced.

Canadian Finance Minister Jim Flaherty has been vocal about seeing CMHC continue to tighten their financial criteria/insurance requirements as specially as it relates to a homeowner who wants to purchase investment properties. It was reported that Minister Flaherty hopes to reach an agreement with banks within days that would prohibit them from marketing insurance products on their websites.

These efforts only stand to benefit and protect Canadians and our real-estate economy in its entirety.