27 Jul Help for self-employed borrowers from the CMHC
The Canadian Mortgage and Housing Corporation will be making it easier for self-employed Canadians to qualify for a mortgage.
The CMHC claims that it will provide more guidance and flexibility for lenders who can help self-employed borrowers.
The problem is that the self-employed may have a harder time qualifying for a mortgage. Factors such as unpredictable, varying incomes contribute to the difficulty in mortgage approval.
With this being said, the CMHC will be providing examples of factors used to support the lender’s decision to lend to borrowers in certain circumstances; such as if the borrower has been operating their business for less than 24 months, or has been in the same line of work for less than 24 months.
A more broad range of documentation options will be created in order to increase flexibility for satisfying income and employment requirements.
These changes will come into effect on October 1, including both transactional and portfolio insurance.
The self-employed make up a large portion of the workforce in Canada; many of them providing us with businesses that benefit our day-to-day lives. With that being said, it is crucial that self-employed workers are able to qualify for a mortgage and have the equal opportunity at home ownership.