CMHC Abandons Self-Employed Borrowers / New Mortgage Insurance Rules

 Now only those self-employed who can prove income will be permitted to obtain an insured mortgage.Generally insurance is required buyers with less than 20% of the purchase price as a down payment.  Another rule affecting all buyers is that you cannot have more than one CMHC insured home owner insurance at time. In the past a buyer would purchase a property with as little as 5% down, live in it as a principal residence and then some time later move out, use it as a rental and put 5% down on a second property claiming it as a principal residence. With tighter restrictions generally, credit unions who are not subject to Federal law should be the winners. These rules do not affect salaried employees.