New CMHC Rules for Self-Employed Borrowers in effect TODAY
New rules for self-employed borrowers are effective today Friday, April 9th,
2010 for all mortgages insured by by Canada Mortgage and Housing Corporation
(CMHC) and pose new challenges for this category of clients.
*Purchases are only available up to 90% (previously 95%)
*Refinances are only available up to 85% (previously 90%)
*Commissioned sales borrowers are no longer eligible under this program
*A minimum of 2 years consecutive self-employment will no longer be required
*Borrowers must have a minimum of 2 years work experience in the same field
Now, self-employed and commissioned-income borrowers with more than three years in the same business applying for a mortgage, are required to provide traditional proof of income (or "third party validation") through documents like financial statements, T1 Generals, Notice of Assessments and T4s etc.
PLEASE NOTE: Genworth Financial Canada's (GNW) policies remain unchanged and self-employed applicants who have been in business for 2 years or longer continue to be eligible BUSINESS FOR SELF (ALT. A) program that means more Choice & Convenience for your potential clients.
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6 mon 3.85
1 year 2.49
2 year 2.95
3 year 3.29
4 year 4.09
5 year 4.19
7 year 4.95
Prime Rate 2.25% prime -.50% = 1.75%
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