#may302014

And more changes to come….. Genworth…

At the beginning of May, CMHC advised that they were making changes to their product line effective for May 30, 2014, the changes were talked about in our previous blog B21 & CMHC Rule Changes

Shortly after that Genworth reviewed their books and they announced the following:

Effective May 30, 2014, the maximum number of units allowable under the Vacation/Secondary Home Program will be reduced from 2 units to 1 unit.

Upon review of the current Business for Self Program, they will not make any changes to their product line.

Current guidelines for Genworth’s Business for Self program state the following:

The income reported by the borrower must be reasonable based on the industry, length of operation and type of business

Strong credit profile with minimum 2 trade lines with at least two (2) years history

No mortgage, installment or revolving credit delinquencies appearing on the credit bureau in the past 12 months

No reported defaults on residential mortgages for the past 7 years

No previous bankruptcy

Minimum 5% down payment from the borrowers own savings. The remainder may be gifted from an immediate family member. Borrowed down payments are not permitted.

Borrowers with commission income are ineligible

Lender to ensure borrower(s) have no tax arrears

All applicants used to qualify must occupy the property (If two unit property, one unit must be owner occupied)

Questions about your mortgage options and Business for Self?