Refinancing activity [at CMHC] tumbled nearly 40% following a move by Finance Minister Jim Flaherty to tighten mortgage rules this spring. Sales of the CMHC’s mortgage insurance fell by 10% immediately after the changes were introduced, though they have regained some ground since then. … Changes to mortgage rules, [included] reducing the maximum amortization period for loans qualifying for CMHC insurance to 30 years from 35 years; lowering the maximum amount that Canadians can borrow to refinance their mortgages to 85% from 90% of the value of their homes; and withdrawing CMHC insurance from non-amortizing home equity lines of credit.
“The size of the drop in refinancing is surprising to the point of shocking. You could hardly have better evidence of the extent to which CMHC practices have been supporting high debt and risky borrowing by homeowners.” – Finn Poschmann, vice president of research at the C.D. Howe Institute
Answer: Yes, it clearly did.
The risk remains present in the form of overextended ‘owners’.