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CMHC is eliminating two of its mortgage insurance product offerings effective May 30, 2014.

As part of the review of its mortgage loan insurance business, CMHC is discontinuing its Second Home and Self-Employed Without 3rd Party Income Validation mortgage insurance products effective May 30, 2014.

CMHC

Self-employed borrowers can still qualify for CMHC insured financing through CMHC homeowner products with a validation of their income using traditional methods.

CMHC Second Home and Self-Employed Without 3rd Party Income Validation will remain available for new mortgage loan insurance requests submitted to CMHC before May 30, 2014, regardless of the closing date of your home purchase.

To qualify for a high-ratio mortgage Self-employed borrowers will now need to validate their income by providing copies of their Notice of Assessment, audited financial statements or unaudited financial statements prepared by an independent third party, for the previous two year period.

If you are a Self-Employed Borrowers unable to provide 3rd Party Income Validation please contact us to discuss your mortgage options

Going forward, CMHC will also limit the availability of homeowner mortgage loan insurance to only one property per borrower/co-borrower at any given time.

Frequently Asked Questions:

What is the cut-off for home purchases using CMHC’s Second Home and Self-Employed Without 3rd Party Income Validation products?

CMHC’s Second Home and Self-Employed Without 3rd Party Income Validation will remain available for new mortgage loan insurance requests submitted to CMHC before May 30, 2014, regardless of the closing date of the home purchase.

I am planning to buy a home in the coming months and will require a CMHC-insured mortgage. If I do not know which property I will be purchasing before May 30, 2014, am I still able to purchase a home using CMHC’s Second Home or Self-Employed Without 3rd Party Income Validation products?

We will need to submit your complete mortgage application to CMHC prior to May 30, 2014. Once we have obtained the necessary borrower and property information from you, we will be able to proceed with a CMHC mortgage loan insurance request.

CMHC’s Second Home and Self-Employed Without 3rd Party Income Validation will remain available for new mortgage loan insurance requests submitted to CMHC before May 30, 2014.

I am purchasing a home that is being built and will require a CMHC-insured mortgage. I will require progress advance draws which will occur on or after May 30, 2014. Will CMHC’s Second Home and/or Self-Employed Without 3rd Party Income Validation remain available to me?

CMHC’s Second Home and Self-Employed Without 3rd Party Income Validation will remain available for new mortgage loan insurance requests submitted to CMHC before May 30, 2014 even if progress draws are requested on or after May 30, 2014.

Does this mean that a borrower will no longer be able to act as a co-borrower on another application?

CMHC will now limit the availability of homeowner mortgage loan insurance to only one property per borrower/co-borrower at any given time.

Will CMHC accept financing overlap in situations where the closing date of the home being purchased is before the closing date of the home being sold?

Overlap of CMHC-insured financing (i.e. bridge financing) will be permitted when there is a firm purchase and sale agreement for the existing property. Other exceptions that may arise due to specific circumstances may be considered on an exception basis.

Have more questions about these CMHC changes?

Simply fill in the form below and a mortgage professional will be in touch.
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