April 19th changes to mortgage rules for self employed individuals. Are you ready?
Some upcoming changes to Canada's mortgage rules could affect your home purchase, if you’re applying for a mortgage with a down payment of less than 20% of the value of the property. Below is a brief rundown of the changes proposed by the Finance Ministry and scheduled to go into affect April 19, 2010.
Changes impacting those who are self-employed:
- Individuals who are applying for a stated-income mortgage will now have to put down at least 10 per cent, up from 5 per cent today.
- Borrowers that have been self employed for more than 3 years will now have to qualify based on income declared to CRA and will have to provide adequate income confirmation. The same applies for those earning income through commissions.
There are also changes taking place that will impact people looking to purchase rental property which I've outlined on my site which you can find at www.BCMortgageAdvice.com , or feel free to contact me through this site. I'm always happy to answer any questions.
