Global Wealth Management and Banking Overview
.
Housing Policy Developments in Canada
Consistent policy initiatives to maintain a balanced and sustainable market
2018
Ontario: Elimination of rent control on
new rental units first occupied on or
before November 1, 2018
⚫ British Columbia: Extension of the
Property Transfer Tax on non-resident
buyers. Investment of more than $1.6
billion through FY2021 toward the goal
of building 114,000 affordable housing
units in the next 10 years
• Canada: OSFI imposes more stringent
stress tests for uninsured mortgages,
including a minimum qualifying rate at
the greater of the five-year fixed
posted rate or the contractual rate plus
200 bps, effective January 1, 2018
•
2017
Ontario: 16 measures aimed to slow
rate of house price appreciation
Key aspects include:
。 15% non-resident speculation tax
Expanded rent control to all private
rental units in Ontario
。
Vacant home tax
。
$125 million five-year program to
encourage construction of new
rental apartment buildings
•
•
2016
Canada: Qualifying stress rate for all
new mortgage insurance must be the
greater of the contract mortgage rate
or the Bank of Canada's conventional
five-year fixed posted rate
Low-ratio mortgage insurance
eligibility requirements updated for
lenders wishing to use portfolio
insurance:
。 Maximum amortization 25 years
o $1 million maximum purchase price
o Minimum credit score of 600
。 Property must be owner occupied
Elimination of primary residence tax
exemption for foreign buyers
• Minimum down payment on insured
mortgages on homes valued $0.5-$1
million increased from 5% to 10%
•
British Columbia: 15% land transfer
tax on non-resident purchases in
Metro Vancouver introduced
Scotiabank®
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