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!