New guidelines for insured stated income mortgages take effect tomorrow.

CMHC, Genworth Canada, and AIG United Guaranty will have a few key guideline differences:

CMHC: Will only make its stated income program available to those who have been self-employed no more than three years.  CMHC will have no minimum self-employed tenure requirement, but it does want to see at least two years employment in same field

Genworth: Will not impose any limit on the number of years someone may be self-employed. However, it does require that applicants be self-employed for a minimum of two years. It will consider exceptions for those self-employed for 1+ years, on a case-by-case basis.

AIG:  Will also not impose a limit on the number of years someone may be self-employed. AIG requires a minimum of two-years self-employment. AIG seems to be more rigid on that 2-year minimum.

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The above guidelines do not apply to self-employed applicants who prove their income using traditional methods (i.e.,  tax returns, NOAs, financial statements, etc.).
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Sidebar:  With respect to rental income, Genworth will deviate slightly from CMHC on 2-unit owner-occupied properties in Victoria and Greater Vancouver. Genworth will allow 100% of the gross rental income to be included in the borrower’s gross annual income (as opposed to CMHC’s 50% guideline).