Canada Mortgage Housing Corporation (CMHC) has improved its mortgage loan insurance approval system to help more self-employed borrowers buy homes and duplexes. Pierre Serre, a CMHC vice-president, says the program, known as Self-Employed Simplified, will make it easier for some self-employed borrowers to obtain mortgage loan insurance and, as a result, access to more competitive interest rates. Serre says the improvements will help self-employed borrowers and commissioned salespeople obtain CMHC-insured mortgages in much the same way as borrowers who receive salaries or hourly wages. The changes, to be implemented March 30, are a response to a growing proportion of self-employed people in the workforce. CMHC says it will use more “sophisticated models” to help assess the risk associated with borrowers who have difficulty obtaining third-party validation of their income.
Posted on January 12th, 2007 by Roland Lewis