There has been a lot of talk about CMHC rule changes to prevent a bubble. The rules should be modified to prevent people from getting in over their heads, regardless of where prices are. It appears that 30 year/10% down is not in the cards, but that does not mean that there aren't some other ways of preventing foreclosures.
1. Ensure the minimum downpayment is from personal savings, not another loan.
2. Raise the credit score required for higher amortization mortgages.
3. Ensure those qualifying on historically low variable rates are able to handle higher payments. I suggested 6% here. For those that don't qualify for 6% then at least limit the term to a 5-year fixed. The choice to go variable should not be done for affordability.
4. Verify incomes with tax statements if self employed individuals want CMHC insurance for high ratio mortgages.
I think the entire discussion being framed around preventing a bubble was a mistake. The goal of the changed rules should not be to cool down the housing market, but to prevent future foreclosures.