Self-Employed Borrowers

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Blog by Ottawa Real Estate | Ottawa Homes for Sale | Ottawa Relocation | April 10th, 2010

New CMHC Rules for Self-Employed Borrowers

New rules for self-employed borrowers are effective today Friday, April 9th, 2010 for all mortgages insured by by Canada Mortgage and Housing Corporation (CMHC) and pose new challenges for this category of clients.

  • Purchases are only available up to 90% (previously 95%)
  • Refinances are only available up to 85% (previously 90%)
  • Commissioned sales borrowers are no longer eligible under this program
  • A minimum of 2 years consecutive self-employment will no longer be required
  • Borrowers must have a minimum of 2 years work experience in the same field


Now, self-employed and commissioned-income borrowers with more than three years in the same business applying for a mortgage, are required to provide traditional proof of income (or "third party validation") through documents like financial statements, T1 Generals, Notice of Assessments and T4s etc.