Changes to CMHC Self- Employed Programs Coming October 1, 2018

The Canada Mortgage and Housing Corp. (CMHC) recently announced that they will be making changes to their self-employed borrower criteria starting October 1, 2018. Although they have not set out clear outlines, the changes are meant to positively impact the roughly 15% of Canadians that make up the self-employed workforce.

These changes will help those individuals that have been self-employed for less than 2 years or have been in the same line of work for less than 2 years, which at present, limit the standard 2 years of documentation required for the self-employed program. Such factors include:

-Acquisition of an established business

-Sufficient cash reserves

-Predictable earnings

-Previous training and education

The new program also lays out changes to submission of documentation to support the business and satisfy income requirements. These include notice of assessment accompanied by a T1 General tax form, a proof of income statement from the Canada Revenue Agency, and a form T2125, which is a statement of business or professional activities.

More information will become available in the following weeks and months leading up to the October 1 roll-out.

For more on the CBC article, click here.

For the CMHC announcement, click here.

For more information, contact your Mortgage Broker for trusted advice.