CMHC’s new Business for Self (BFS) rules will come into effect on April 9 (prior to the big April 19 rule changes).
If you want to use the older, more liberal BFS rules, you’ll need to have a firm lender approval or (if a purchase) a fully executed purchase agreement by April 8.
This deadline is especially relevant if you’re mortgage shopping and are:
- Paid 100% on commission
- Self-employed and in need of 95% loan-to-value on a purchase
- Self-employed for over three years
These rule changes apply to stated-income mortgages only. If you are self-employed and fully proving your income then you can ignore this post.
Speak to a mortgage professional for complete details.
Thanks for the heads up and Great Post, quick question who would you recommend in terms of lenders for a client who was recently employed but left to start thier own firm, still in same industry and type of work, but only been 6 months.
Try Home Trust or Equitable
Do these rules only apply to people who can’t demonstrate a high enough income using tax returns? What would happen for someone who has been self-employed for a longer time but only registered government accounts/incorporated in the last year?
Hi Richard,
Thanks for the question. I just realized that this might not have been clear unless one clicked the link in the first sentence.
These rule changes apply to stated-income mortgages only. If you are self-employed and fully proving your income then you can ignore this post. I just added this note to the story for good measure.
Cheers,
Rob