As people have increasingly entered the world of self-employment, lenders have made great strides in their flexibility in giving mortgages to those with non-traditional sources of income. Well it seems that the time has come for them to tighten up their requirements once again.
Effective April 9th, CMHC (the people who insure mortgages for buyers with less than 20% down) will now require a 10% down payment from those who are self employed, have been in business less than 3 years and who cannot prove income via traditional means. They’ve also reduced the amount available for refinancing to 85% of the appraised value.
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