On Oct. 1, it will be easier for the country’s self-employed to obtain a mortgage, thanks to Canada Mortgage and Housing Corp (CMHC).
The housing agency is providing a broader range of documentation options to increase exibility for satisfying income and employment requirements, Canadian Press reports. Currently, Canada’s self-employed — those in the so-called ‘gig’ economy largely made up of freelancers, independent contractors and on-demand workers — find it difficult to qualify for a mortgage due to varying and inconsistent income. One example of additional flexibility for lenders is new factors that CMHC has identified that would support a decision to loan to borrowers who have been operating their business for less than two years.
Currently, about 1.9 million Canadians are classied as self-employed while another 2.3 million are classied as temporary employees, making up nearly a quarter — 21.5 percent — of Canada’s overall work force, reports Statistics Canada.
Intuit Canada, a financial management and tax preparation developer for personal finance and small business accounting, predicts that self-employed workers will make up 45 percent of the Canadian workforce by 2020. ◊