Business for Self Borrowing Guidelines

Renew your Mortgage is able to provide funding on any Business for self, self employed individual under the following terms and conditions.

Streamlining the Home Financing Process for Self-Employed Borrowers CMHC offers mortgage loan insurance options for self-employed borrowers with  traditional third party validation of income.  Fact sheet  Presentation — For Borrowers With Traditional Third Party Validation of Income  Applicable Premiums Benefits of CMHC Self-Employed Access to Homeownership With a minimum down payment of 5%. Competitive Interest Rates Access to CMHC-insured financing, and as a result, competitive interest rates. Availability Products and services available coast-to-coast-to-coast. Features Available for purchase, refinance and improvement. Flexible financing options — single advance and progress advances are available. Interest rate types include: Fixed, capped and standard variable, and adjustable. Self-employed borrowers with documentation to support their income have access to all existing 1 – 4 unit CMHC Mortgage Loan Insurance products subject to the same product criteria and insurance premiums as salaried borrowers. CMHC homeowner mortgage loan insurance is available to a maximum of one property (1 – 4 units) per borrower/co-borrower at any given time. CMHC offers mortgage loan insurance premium refunds for homeowners who purchase an energy-efficient home or make energy-saving renovations to an existing home. See CMHC Green Home for more information. Product Highlights: Loan Purpose Purchase, refinance, purchase or refinance with improvements, single and progress advances. Loan-to-Value (LTV) Ratio Purchase : up to 95% LTV (1 – 2 units) up to 90% LTV (3 – 4 units) Refinance: up to 80% (1 – 4 units) Down Payment Traditional* and Non-Traditional** Sources Number of Units/Occupancy 1 – 4 units Maximum Amortization 25 years Maximum Purchase Price Maximum purchase price or as-improved property value must be below $1,000,000. Borrower Eligibility Permanent residents including newcomers to Canada. Non-permanent residents are limited to a 1 unit owner-occupied property and a maximum LTV of 90%. Income taxes must be paid and up to date. Approved Lenders are to verify, prior to submitting an application to CMHC, that the borrower(s) does not have existing CMHC-insured homeowner financing. Lender Requirements Borrower’s Notice of Assessment, audited financial statements or review engagement financial statements prepared by practising accountant. Income determined by averaging the income of the previous two year period or using most recent year if income has increased year over year for 4+ years. Confirmed NOA income can be grossed up 15%. Employment Requirements Minimum 2 years in same type of work, even if not in a self-employed capacity. General Guideline for History of Managing Credit*** (Credit Score) LTV > 80%: Recommended minimum score of 600 LTV 60.01 - 80%: Minimum score of 580 LTV ≤ 60%: No minimum score required Debt Service Guideline*** Credit score: GDS/TDS: < 680 : 35% / 42%, 680+ : 39% / 44%* *Debt service flexibilities are based on an assessment of the strength of the overall application. Satisfying the minimum credit score alone does not automatically entitle the borrower to debt service flexibilities. Loan Security First Mortgage, Second Mortgage (Refinance) or Chattel Mortgage Applicable  Premiums (Owner-occupied properties) Surcharge Loan to Value Ratio Premium on Total Loan Amount Premium on Increase to Loan Amount for Refinance Blended Amortization Refinance**** 0.60% Up to and including 65% 0.60% 0.60% Up to and including 75% 0.75% 2.60% Up to and including 80% 1.25% 3.15% Up to and including 85% 1.80% N/A Up to and including 90% 2.40% N/A Up to and including 95% Traditional Down Payment* 3.15% N/A Non-Traditional Down Payment** 3.35% N/A *Traditional sources of down payment include: Applicant’s savings, RRSP withdrawal, funds borrowed against proven assets, sweat equity (< 50% of minimum required equity), land unencumbered, proceeds from sale of another property, non-repayable gift from immediate relative, equity grant (non-repayable grant from federal, provincial or municipal agency). ** Non-traditional sources of down payment include: Any source that is arm’s length to and not tied to the purchase or sale of the property such as borrowed funds, gifts, 100% sweat equity and lender cash back incentives. *** Individuals can access their scores and credit reports from the following credit reporting agencies:www.equifax.ca or www.transunion.ca. For purchase transactions the premium payable is the Premium on Total Loan Amount. For refinance, the premium is the lesser of Premium on Increase to Loan Amount or the Premium on Total Loan Amount. Premiums in Manitoba, Ontario and Quebec are subject to provincial sales tax — the sales tax cannot be added to the loan amount. **** Where there is an increase to the loan amount, the amortization period of the existing CMHC-insured loan and the loan increase may be blended using a weighted average provided the resulting amortization does not exceed the remaining economic life of the property. For refinance transactions the resulting amortization may not exceed 25 years. A 0.60% blended amortization surcharge to the loan increase applies to the Premium on Increase to Loan Amount.

Contact a Renew Your Mortgage affiliate member for independent mortgage advice.