Jun 2, 2014Canada Mortgage and Housing Corp. has discontinued the Second Home and Self-Employed Without 3rd Party Income Validation mortgage insurance products. Self-employed Canadians can still qualify for CMHC-insured financing through CMHC homeowner products with a validation of their income using traditional methods.
The federal housing agency says the two programs combined account for less than three per cent of CMHC’s insured business volumes in units. “Given the limited use of these products, their discontinuation is not expected to have a material impact on the housing market,” says the agency.
CMHC introduced its Self Employed Without Traditional 3rd Party Validation of Income product in 2007. The product allowed self-employed borrowers who were unable to provide traditional sources of income validation to access CMHC-insured financing for a one or two-unit owner-occupied property.
CMHC introduced the Second Home product in 2005. It offered borrowers more financing options when purchasing an owner-occupied second home in Canada.
CMHC says it will limit the availability of homeowner mortgage loan insurance to only one property (one to four units) per borrower/co-borrower at any given time.
Posted by Steven Porter, Broker, REMAX Aboutowne Realty Corp.
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