RBC Business Segments and Market Strategy
Legislation and policies - promoting a healthy housing market
December 2015
RBC
■ Minimum down payment for new government-backed insured mortgages increased from 5% to 10% for portion of the value
of a home being purchased that is between $500,000 and $999,999
April 2014
■ CMHC discontinued offering mortgage insurance on second homes and to self-employed individuals without 3rd party
income validation
July 2012
■ Maximum amortization on government-backed insured mortgages reduced to 25 years from 30 years
▪ Maximum amount that can be borrowed on a mortgage refinancing lowered to 80% from 85%
■ CMHC insurance availability is limited to homes with a purchase price of <$1 million lowered from $3.5 million
Set the borrower's maximum gross debt service ratio at 39% and maximum total debt service ratio at 44%
March 2011
■ Maximum amortization on government-backed insured mortgages reduced to 30 years from 35 years
■ Maximum amount that can be borrowed on a mortgage refinancing lowered to 85% from 90%
February 2010
Borrowers must meet the standards for a five-year fixed rate mortgage
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Max. amount that can be borrowed on a mortgage refinancing lowered to 90% from 95%
■ Min. 20% down payment is required in order to qualify for government-backed mortgage insurance on non-owner-occupied properties
July 2008
■ Maximum amortization on government-backed insured mortgages reduced to 35 years from 40 years
■ A minimum 5% down payment is required in order to qualify for government-backed insured mortgages
Canadian Housing Market
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