Monday, April 26, 2010
Self employed mortgages
CMHC currently offers default mortgage insurance for self-employed borrowers through a stated-income mortgage product up to 95% loan to value (LTV) – meaning the down payment can be as low as 5% of the purchase price. But as of April 9th, 2010, the maximum LTV for self-employed individuals will decrease to 90% for purchases – meaning the down payment will now be 10% instead of 5%. And if a self-employed individual wishes to refinance an existing mortgage after April 9th, the maximum loan amount is reduced to 85% from the current 90% of the home’s value.