Investor Presentation Second Quarter 2018
HOUSING POLICY DEVELOPMENTS IN CANADA
2018
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The BC government implements its Homes for BC plan which aims to
improve housing affordability. Key measures include an increase and
extension beyond the Greater Vancouver Area of the Property Transfer
Tax on non-resident buyers, a new tax on real estate speculation, and
investment of more than $1.6 billion through FY2021 toward the goal of
building 114,000 affordable housing units in the next 10 years
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
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Ontario government implements 16 measures aimed to cool the rate of
house price appreciation. Key aspects include:
О 15% non-resident speculation tax imposed on buyers in the Greater
Golden Horseshoe area who are not citizens, permanent residents or
Canadian corporations
o Expanded rent control that applies to all private rental units in Ontario
。 Legislation to allow for a vacant home tax
o $125 million five-year program to encourage construction of new
rental apartment buildings by rebating a portion of development
charges
2016
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CMHC 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
CMHC updates low-ratio mortgage insurance eligibility requirements
for lenders wishing to use portfolio insurance:
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Maximum amortization 25 years
o $1 million maximum purchase price
О
Minimum credit score of 600
○ Property must be owner occupied
2016
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Canada Revenue Agency now requires reporting of a disposition of a
property for which the principal residence exception is claimed. Foreign
buyers are not able to claim the primary residence tax exemption
Department of Finance launched a public consultation process regarding
lender risk sharing. Comments were submitted in February 2017
B.C. government introduced an additional 15% land transfer tax on
non-resident purchases in Metro Vancouver
Minimum down payment on insured mortgages on homes
valued $0.5 - $1 million increased from 5% to 10%
2014
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CMHC discontinued offering mortgage insurance on second homes
and to self-employed individuals without 3rd party income validation
2012
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Maximum amortization on insured mortgages reduced
to 25 years (from 30)
Maximum amount borrowed on insured mortgages at refinancing
reduced to 80% (from 85%)
CMHC insurance availability is limited to homes with
purchase price < $1 million
For insured mortgages, maximum gross debt service ratio of 39%
and maximum total debt service ratio of 44%
Maximum LTV for HELOCS lowered to 65% (from 80%)
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