Canada’s National Housing Corporation (CMHC) is restructuring its qualification requirements in order to make it easier for self employed workers, entrepreneurs and new immigrants to attain homeownership. This involves removing some of the red tape currently required in applying for a mortgage loan.
Right now, under our mortgage insurance policies, you have to be able to document income to get mortgage insurance, to a level of specificity that discriminates against new Canadians, because they can’t do that.”
Siddall also claims that the policies discriminate against the self employed, because they face more difficulties in declaring a stable, regular income.
When it comes to declaring Notice of Assessment stubs from the same employer, for the past two years, flexibility would be welcome amongst new immigrants and start-up entrepreneurs.
The agency is looking into relaxing the rules by considering different ways of documenting income, and taking more risk with higher premiums.
CMHC hopes that these changes will make it easier for a segment of borrowers to attain a mortgage, although they will have to incur higher interest rates.
Siddall said the Crown corporation expects to announce new changes on this front within the next six months.