Self Employed Purchase Insurance Premium

The following guidelines are written assuming you are a business owner and do not have sufficient reported income on T1 (read here for BFS general guidelines)

Even if you do not have enough income to qualify for your dream house, you are still eligible for the purchase up to 95% loan to value (LTV), depending on your credit score. It is called a "BFS Stated Income Program", and is eligible for primary residence purchase or refinance.

To borrow up to 95%, you will need pay a slight insurance premium on the loan amount to offset the fact of not having sufficient reported income. In Canada, the insurance is generated from one of CHMC, Genworth, or AIG. They are highly competitive and offer the same rate for the "BFS Stated Income Program".

Table 1. CMHC Genworth AIG Self-Employed Insurance Premium