The following changes apply to mortgage loan insurance applications submitted to CMHC /Genworth on or after April 9, 2010:
- CMHC/Genworth will no longer be accepting stated income for those who have been self employed longer than 3 years or are commissioned sales.
- Reduced the maximum loan to value from 95% to 90% on the stated income product for self employed on purchases and 85% for refiannces.
- Reduced refinances from 95% to 90% for owner-occupied properties
- Reduced maximum loan to value ratio for purchase/refinance on non owner-occupied investment properties to 80%.
- Maximum 50% of eligible rental income can be added to gross income for qualification purposes
- Qualifying interest rate for loan to value ratios greater than 80% for mortgages with a fixed rate term of less than 5 years and for all variable rate mortgages is the greater of the benchmark* rate and the contract interest rate.
*The benchmark rate on the Bank of Canada website will be used for the qualifying rate. The benchmark rate is typically the 5 year fixed posted rate. Qualifying rate will be for high ratio mortgages only.
