Great news for self-employed people applying for mortgages
Self-employed individuals often face challenges when applying for a mortgage and are often offered higher interest rates, or require co-signers. There is great news for entrepreneurs!
The CMHC (Canada Mortgage and Housing Corporation) has announced that they are making moves aimed at giving lenders more guidance and flexibility for self-employed individuals.
As reported by CBC, "CMHC said those factors could include things such as:
- Acquisition of an established business.
- Sufficient cash reserves.
- Predictable earnings.
- Previous training and education.
CMHC said that previously, those types of applications could be accepted, providing that a "solid rationale" was noted in the lender's loan file."
These changes will be very helpful for small business owners.
CBC also reported that a broader range of document options could be used to qualify for a loan. Speak with your tax advisor about working with your lender to prepare the document package for your mortgage application!