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Archive for the ‘Self Employed’ Category

Self Employed? Stated Income (not verified)

Monday, April 26th, 2010

Are you self employed?  Concerned about how the new CMHC Mortgage Insurance Rules affect you?

If you have NOT been in business for 3 years (but in the same type of work for 2 years even if not self employed) AND

You do NOT claim / declare all of your income then you have access to the CMHC insured financing for purchase transactions up to 90% LTV or 85% for refinances

Purchases: with as little as 10% down (90%LTV)

Refinances: up to 85% of the value

Other requirements:

-Income taxes must be paid and up to date

-Must provide copy of business or GST licence, or Articles of Incorporation

-Min credit score 600 (to qualify for 90% purchase credit scor must be 650+)  for 90% purchase or 85% refinance generally you can not have any late payments for last 2 years

For more information please complete our confidential comment form below, or on our Contact Page or email

mortgages@dropmyrate.ca

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Self Employed? In Business 3 years and Income is Verified?

Monday, April 26th, 2010

Are you self employed?  Concerned about how the new CMHC Mortgage Insurance Rules affect you?

If you have been in business for 3 years AND

You claim / declare all of your income & your income is verifiable by a Third Party; i.e. Revenue Canada via Notice of Assessment & Tax Return, or Audited Financials Statements for your business then you have access to the same mortgage products as salaried borrowers.

Purchases: with as little as 5% down (95%LTV)

Refinances: up to 90% of the value

Other requirements:

-Income taxes must be paid and up to date

-Must provide Notice of Assessment, and financial statements prepared by practicing accountant

-Min credit score 600

For more information please complete our confidential comment form below, or on our Contact Page or email

mortgages@dropmyrate.ca

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Self Employed? Changes to CHMC Mortgage Insurance

Monday, March 8th, 2010

Policy Changes to CMHC Self-Employed

CMHC is also announcing policy changes to the CMHC Self-Employed Product Without Traditional Third Party Validation of Income. Effective April 9, 2010, self-employed borrowers with more than 3 years in the same business and commissioned-income borrowers will be required to confirm their income and will not be eligible for the Self-Employed Product Without Traditional Third Party Validation of Income. This product is intended for a small portion of borrowers who find it very difficult to document income – in particular, recently self-employed borrowers. For the majority of self-employed borrowers, income validation is readily available through financial statements, contracts, T4s and other third party income validations. The changes will ensure that self-employed borrowers with third party income validation will benefit from a lower premium. Furthermore, the maximum loan-to-value ratio available under the CMHC Self-Employed Product Without Traditional Third Party Validation of Income will be reduced from 95% to 90% for purchase transactions and from 90% to 85% for refinance.

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