Are you self-employed and having a hard time getting approved for a mortgage to buy a house in Ottawa? Well, we have good news!!
Canada Mortgage and Housing Corporation (CMHC) has announced that it would be changing the documentation that lenders can use when they’re considering applications from self-employed buyers.
Self-employed buyers can now submit Notices of Assessment (NOA), T1, CRA Proof of Income Statements, and the Statement of Business or Professional Activities (T2125) to support their mortgage applications.
Also, CMHC would consider other those factors such as:
- Acquisition of an established business.
- Sufficient cash reserves.
- Predictable earnings.
- Previous training and education.
These changes will come into effect on Oct 1, 2018 and will apply to mortgages that are insured with transactional insurance — mortgage insurance for buyers who have put down a down payment of 20% or less.
CMHC will also give lenders examples of reasons they can lend to self-employed borrowers — especially those who have been running a business for less than 24 months, or have been in the same line of work for less than 24 months.
We can help you buying your home! Contact us today!