Opal Hustins Broker

Opal Hustins Broker

Mortgage rule changes for Self-Employed Canadians

Well, I say, it's about time.  So many self-employed Canadians get raked over the coals to prove themselves worthy just to buy a home to live in.  The powers that be must have finally taken notice that we self-employed make up a very decent % of the population who contribute to the growth of this country and deserve to be treated a bit more fairly when it comes to getting financial backing to purchase a home.

Canada Mortgage and Housing Corporation is to give lenders more guidance and flexibility to help self-employed homeowners.

As part of the National Housing Strategy, CMHC’s plan aims to support those whose income can be variable or less predictable and restrict their ability to obtain a mortgage.

This is a sizeable sector of the population (15%) and CMHC notes that they are key contributors to the economy and communities.

The changes being made are:

  • Providing examples of factors that can be used to support the lender's decision to lend to self-employed borrowers who have been operating their business for less than 24 months, or in the same line of work for less than 24 months such as acquiring an established business, sufficient cash reserves, predictable earnings and previous training and education; and
  • Providing a broader range of documentation options to increase flexibility for satisfying income and employment requirements when qualifying self-employed borrowers such as the Notice of Assessment (NOA) accompanied by the T1 General, the CRA Proof of Income Statement and the Statement of Business or Professional Activities (T2125) to support an "add back" approach for grossing up income for sole proprietorship and partnerships.

"Self-employed Canadians represent a significant part of the Canadian workforce. These policy changes respond to that reality by making it easier for self-employed borrowers to obtain CMHC mortgage loan insurance and benefit from competitive interest rates," said Romy Bowers, CMHC chief commercial officer.

The changes come into effect from October 1, 2018.


Your blog is extremely

Your blog is extremely brilliant especially the quality content is really appreciable.

Mortgage rules

I haven’t read such distinctive material anywhere else.


We were feeling that new laws and regulations should be made which should be altered with the previous Mortgage rule for self-employed Canadians.

Dave Ryan

I am glad to read about your blog where you have described outstanding information.

Have Questions?

Disclaimer By entering my contact information I give my express consent to be contacted by 'Opal Hustins, ROYAL LEPAGE YOUR COMMUNITY REALTY' and or real estate salespeople on behalf of 'ROYAL LEPAGE YOUR COMMUNITY REALTY' to discuss potential services.
© ROYAL LEPAGE YOUR COMMUNITY REALTY*Independently Owned & Operated905-476-4337461 THE QUEENSWAY SOUTH, KESWICK, Ontario, L4P2C9
KESWICK real estate leads by InCom Real Estate