Effective May 30th, 2014 CMHC is eliminating 2 programs. The self-employed stated income program and the 2nd home programs will both be eliminated. Self-employed applicants wanting to be approved through CMHC must now prove their income and applicants now looking to buy a 2ndhome cannot obtain financing through CMHC.
What does this mean?
These 2 programs accounted for less than 3% of all mortgages at cmhc. The elimination of these 2 programs will have little effect. Most self-employed applicant not able to prove their income were not going to cmhc in the past anyway. The premiums were way too high and the qualification was tough. Self-employed applicants were better off getting a bank 1st and obtaining secondary financing elsewhere – it was not only cheaper, but less strict on qualifying. As for the 2nd home program, not many applicants could afford to carry 2 homes on their own. Applicants would require the property to be rented to help qualify.