Self Employed Simplified
For Borrowers Without Traditional Forms of Income Verification
CMHC Self-Employed Simplified can make it easier for self-employed borrowers, who have difficulty providing third party validation of their income, to realize their dreams of home ownership.
Features
- Available for Purchase and Refinance transactions including Line of Credit / Interest Only Mortgages
- 1 and 2 unit residential properties
- No documentation required on a borrower's tax status - CMHC relies on emili's experienced and sophisticated risking models
- Flexible financing options - Single advance, progress advances and extended amortization periods are available
- Flexibilities available for energy efficient homes
Self-Employed Borrowers Benefits
- Smaller Down payments - Purchase a home with as little as a 10% down payment
- Competitive Interest Rates - Fixed Rates, Variable Rates, Prime Rate
- Availability - Available coast-to-coast-to-coast with no set maximum loan amount (individual lender maximums will apply)
Amortization Options
Borrower Qualification
- Minimum credit score of 700 for a purchase with only 5% down payment. Maximum debt servicing ratios of 35/42.
- Borrowers must have been self employed in same line of work for less than 3 years in order to qualify for this product. Instead they will need to rely on more traditional third party income proof.
- Self-employed borrowers who have been BFS for more than 3 years will not be eligible under CMHC's Self-Employed Product without 3rd Party Validation of Income.
- 100% commissioned income borrowers will
not be eligible under CMHC's Self-Employed Product without 3rd Party Validation of income
Application Premiums For Purchases
(Owner occupied properties) |
Surcharges |
| Loan to value Ratio |
Premium on Total Loan Amount |
Premium on Increase to Loan Amount for Portability |
Extended Amortization = Add 0.20% for every 5 years of amortization beyond the 25 year amortization period.
Blended Amortization = For portability 0.50%
CMHC Line of Credit/Interest Only Mortgages = Repayment Option: 5 Years (5/20) 0.25% 10 Years (10/15) 0.50% Conversion from 5/20 to 10/15 0.35%
|
| Up to and Including 65% |
.80% |
1.50% |
| Up to and Including 75% |
1.00% |
2.60% |
| Up to and Including 80% |
1.64% |
3.85% |
| Up to and Including 85% |
2.90% |
5.50% |
| Up to and Including 90% |
4.75% |
7.00% |
Application Premiums For Refinances
(Owner occupied properties) |
Surcharges |
| Loan to value Ratio |
Premium on Total Loan Amount |
Premium on Increase to Loan Amount for Portability |
Extended Amortization = Add 0.20% for every 5 years of amortization beyond the 25 year amortization period.
Blended Amortization = For portability 0.50%
CMHC Line of Credit/Interest Only Mortgages = Repayment Option: 5 Years (5/20) 0.25% 10 Years (10/15) 0.50% Conversion from 5/20 to 10/15 0.35%
|
| Up to and Including 65% |
.80% |
1.50% |
| Up to and Including 75% |
1.00% |
2.60% |
| Up to and Including 80% |
1.64% |
3.85% |
| Up to and Including 85% |
2.90% |
5.50% |
