New CMHC Rules. What does it mean? 
 
The new CMHC rules came into effect on April 19, 2010. Here are the new rules and changes.
 

1. Variable rate mortgages must be qualified on a 5 year posted rate.
2. Rental Properties - Max loan to value for purchase or refinance is 80%
3. For rental properties only 50% of rental income can now be added to the clients employment income.
4. Maximum second home property someone may own is 1. Therefore a client may own his own property and 1 other second home ( whether it is a cottage or home for a parent or child)
5. Self Employed Individuals can only purchase with a maximum loan to value of 90%. Maximum refinance is 85%.
6. Self Employed who is self employed 3 years or longer does not qualify under stated income. They must show NOA line 150 to average income.
7. Commissioned income employees no longer qualify under CMHC. They must qualify have provable income.
8. Maximum Loan to value for refinances is now only 90%.