In addition to CMHC’s Self Employed Guideline changes the following Rental Qualification Changes are also coming into effect as of April 9th at some lenders. With others following as of April 19th, 2010.
An 80% rental offset is no longer allowed in the TDS calculation if the subject property is generating rental income. 50% of the gross rental income can form part of the borrowers gross annual income.
Rental income from other properties can be used, but must be verified with T1 Generals and NOAs. You can also only gross up the net rental income by 15%.
For more information please don’t hesitate to contact me.