Q1 2020 Fixed Income Investor Presentation
Canadian Mortgage Market Regulatory Developments (continued)
■ Min. down payment for
new insured mortgage
will increase from 5% to
10% for the portion of
the house price above
CAD 500,000
■
Standardizing eligibility
criteria for high-and low-
ratio insured mortgages,
including a mortgage rate
stress test
Closed the capital gains
tax exemption loophole
on the sale of a principal
residence
Ontario
Government
introduced Non-
Resident
speculation Tax
(NRST) of 15% on
properties in the
Greater Golden
Horseshoe area
Vancouver
Foreign Buyers'
Tax increased to
20%
13
7
11
Aug 2016
Jan 2017
Feb 2016
Oct 2016
Apr 2017
8
10
41
Qualifying rate for
mortgages changed
to new benchmark
of "weekly median"
5-yr. fixed insured
mortgage rate +2%
15
Jan 2018
Feb 2018
Apr 2020
Dec 2018
Vancouver
introduced 15%
Foreign Buyers' Tax
Vancouver
introduced Empty
Homes Tax of 1%
of the assessed
value of the home
1 Even if borrowers choose a mortgage with a lower interest rate and shorter term.
Regulations related to Mortgage Default Insurance
CIBC Q1 2020 Fixed Income Investor Presentation
◉
-
12
Updated Guideline B-20
Residential Mortgage
Underwriting Practices
and Procedures in effect
Min. qualifying rate for
uninsured mortgages
greater of 5-yr. Bank of
Canada benchmark rate
or contractual rate +2%
14
BC Government introduced
a Speculation and Vacancy
Tax aimed at increasing
the supply of rental
property inventory
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