Q2 2019 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
7
9
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
11
Aug 2016
Feb 2016
8
Oct 2016
Jan 2017
10
Apr 2017
■
Vancouver
Foreign Buyers'
Tax increased to
20%
13
Jan 2018
Feb 2018
Vancouver
introduced 15%
Foreign Buyers' Tax
Vancouver
introduced Empty
Homes Tax of 1%
of the assessed
value of the home
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%
1 Even if borrowers choose a mortgage with a lower interest rate and shorter term.
Regulations related to Mortgage Default Insurance
CIBC Q2 2019 Fixed Income Investor Presentation
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40
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