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It Just Got Easier for Self-Employed Homebuyers

If you’re a self-employed Canadian who has found it difficult to buy a home because you couldn’t qualify for the required mortgage insurance, there’s good news ahead. The Canada Mortgage and Housing Corporation (CMHC), the country’s largest mortgage insurer, recently announced that it is improving its mortgage loan insurance approval system, through a product enhancement called Self-Employed Simplified, to help more self-employed borrowers realize their dream of homeownership.

In recognition of the growing proportion of self-employed people in today’s workforce, CMHC’s new system will make it easier for borrowers who have difficulty obtaining third-party validation of their income using traditional forms of documentation. “Self-Employed Simplified will make it easier for certain self-employed borrowers to obtain mortgage loan insurance and, as a result, benefit from competitive interest rates,” said CMHC Vice-President Pierre Serré.

With this product enhancement, self-employed borrowers and commissioned salespersons will be able to obtain a CMHC-insured mortgage, much like borrowers who receive a salary or hourly wage from an employer. CMHC Self-Employed Simplified is designed for borrowers who have a minimum of two years in the same type of work and a proven track record of responsibly managing their debt. CMHC Self-Employed Simplified will insure mortgages on one- or two-unit homeowner properties and will also be available for refinance transactions, for mortgages up to 90 per cent of a home’s value. Homeownership just got a whole lot easier – and affordable – for self-employed Canadians!

Not only is this a welcome change for prospective buyers who are self-employed, it’s also great news for home sellers across Canada. With this new innovation easing the approval process and providing access to lower interest rates, there will soon be more buyers entering the market and looking for just the right home. If you’d like to know more about the home buying or selling process, you know who to call!

Posted on Thursday, April 12, 2007 at 01:39AM by Registered CommenterElaine in | CommentsPost a Comment

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