Canadian Mortgage and Housing Corporation (CMHC) has launched a new program for self employed borrowers who are less than 2 Years Self Employed but have experience in their field. This is great news for any client that has recently decided to branch out on their own. In the past, the age old saying in banking was “If you become self employed, you are on your own for two years.” Finally we have some good news in the mortgage industry and something is happening to HELP purchasers buy their first home or possibly upgrade to that dream home they have always wanted. CMHC now says if we can prove you did the exact same job, they will allow us to use the income that you made in the same line of work over the last two years.
If this situation applies to you, consider to buy now. It is very important that you buy your house before you file your first income tax return as self employed. As your mortgage broker my job is to help you buy. That said, it is your accountants job to declare as little net income as possible on your income tax returns to minimalize your income taxes. The bank looks at the previous 2 years income tax returns so if you declare a small income in the most recent year, you will qualify for a lower amount.
The best part of this program, CMHC is not charging you any additional premiums to take advantage of the program and the banks are giving you their best rates. When I think about this offer, I am excited because I know so many clients that could have fit to this exact scenario. The main career that I think about is Long Distance Truck Drivers.
Happy house shopping to everyone and as always , please share this with your family and friends!!