CMHC will no longer accept stated income deals, all income to verified via “third-party verification” (Notice of Assessments, T1 Generals or Business Financials. CHMC has been doing this for a while however there are 2 other insurers Genworth Financial and Canada Guarantee that are still accepting stated income applications for those self-employed, however reasonability of income will be a key factor.
CMHC is also eliminating the Cash-Back Down payment, unless the borrow can come up with their own 5% down payment. The Great news is there are credit Unions that are not governed under these new rules and still provide 5% Cash-back for down payment, however the interest is higher.
For complete details on the changes read the link attached. Need help understanding these changes feel free to contact us at “no cost” at 905-778-8100
Service First Mortgages
Dominion Lending Centres
Mortgage Agent Lic #M08009255