CMHC, Canada’s largest mortgage default insurer, recently announced that it would be changing the rules for a couple of its programs, including its self-employed offerings.
Basically, these changes affect you if:
– You’re self-employed
– You’re looking to buy a home with less than 20% down
– You can’t prove your income traditionally (with Notices of Assessment)
If you don’t fall into the above category, you can stop reading at any time—this post doesn’t apply to you. If you do fall into the above category, take a deep breath—you still have mortgage options.
Thankfully, CMHC isn’t the only insurer on the block. There are two private insurers in Canada—Genworth and Canada Guaranty—who offer the same products as CMHC, and who have decided not to follow in the Crown Corporation’s footsteps. There are also non-prime institutional lenders, private lenders and MICs that could provide you with mortgage options.
If you have any questions about the new mortgage default insurance rule changes, or if you’d simply like to find out if you qualify for home ownership, please feel free to drop me a line.