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Self-Employed Mortgages

The Business for Self Mortgage (Alt-A BFS) offers self-employed clients or 100% commissioned salespeople the ability to own a home, even if they’re unable to provide traditional income verification.

Eligible Products	Fixed Rate Mortgages Variable Interest Rate Mortgages
Eligible Purpose	Purchase Refinance

Eligible Properties	Owner Occupied – Maximum 2 Units New Construction or Resale
LTV	90% Maximum LTV for Purchases 90% Maximum LTV for Refinances
Amortization	Up to 35 Years
CMHC/Genworth	LTV	Purchase	Refinance
Insurance Fees	Up to 65% 65.01-75% 75.01-80% 80.01-85% 85.01-90% 90.01-95%	0.80% 1.00% 1.64% 2.90% 4.75% N/A	0.80% 1.00% 1.64% 2.90% 4.75% N/A
	A 0.20% premium surcharge to be added for every 5 years of amortization beyond 25 years.

Documentation	Self Employed	100% Commissioned Sales
Requirements	Copy of Notice of Assessment confirming no tax arrears. One form of written third party documentation evidencing at least two years self-employment such as:	Copy of Notice of Assessment confirming no tax arrears. One form of written third party documentation evidencing at least two years of commissioned sales income such as:
	GST/HST Returns Business Licence Articles of Incorporation	Letter of Employment Notice of Assessment

Loan-to-Value	Standard PremiumSelf-Employed without 3rd Party Income Validation		Standard PremiumSelf-Employed without 3rd Party Income Validation**
Loan-to-Value	Standard Premium	Self-Employed without 3rd Party Income Validation	Standard Premium	Self-Employed without 3rd Party Income Validation**

Up to and including 65%	0.50%	0.80%	0.50%	1.50%
Up to and including 75%	0.65%	1.00%	2.25%	2.60%
Up to and including 80%	1.00%	1.64%	2.75%	3.85%
Up to and including 85%	1.75%	2.90%	3.50%	5.50%
Up to and including 90%	2.00%	4.75%	4.25%*	7.00%*
Up to and including 95%	2.75%	N/A	4.25%*	*
90.01% to 95% — Non-Traditional Down Payment***	2.90%	N/A	*	N/A
Extended Amortization Surcharges Add 0.20% for every 5 years of amortization beyond the 25 year mortgage amortization period.†

For portability and refinance, the premium is the lesser of Premium on Increase to Loan Amount or the Premium on Total Loan Amount. In the case of portability, a premium credit may be available under certain conditions.

* Premiums shown with an “*” do not apply for refinance. For portability the maximum LTV ratio is 90%, but CMHC may consider higher LTV ratios when the new ratio is equal to or less than the original LTV. For portability, the premium is higher for non-traditional down payments on Increase to Loan Amount.

** For conversion from Self-Employed with traditional 3rd party income validation to Self Employed without traditional 3rd party income validation, the premium is the lesser of: a) the Premium on Total Loan Amount or; b) the outstanding balance multiplied by a 1.5% premium plus the Premium on Increase to Loan Amount.

*** Down Payment Requirements – Traditional sources of down payment include: Applicant’s savings, RRSP withdrawal, funds borrowed against proven assets, sweat equity (‹50% of min.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, lender cash back incentives.

† The amortization cannot exceed 30 years for mortgage loan-to-value ratios › 80%.

Premiums in Ontario and Quebec are subject to provincial sales tax. The provincial sales tax cannot be added to the loan amount.


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