1. The qualifying rate to be used for variable rate mortgages, or terms shorter than 5 years will be a standard benchmark rate published by the Bank of Canada. In essence this is the 5 year posted rate.
2. TDS calculation for rental income has been changed to only include 50% of the gross rental income which is added back to income rather than offset.
3. CMHC’s self employed program will no longer be eligible for borrowers with more than 3 years in the same business. Instead they will need to rely on more traditional third party income proof.
Mortgages just became more difficult for self employed borrowers.
