International Banking - Annual Overview
HOUSING POLICY DEVELOPMENTS IN CANADA
2018
•
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 2%, effective January 1, 2018
2017
•
Ontario government imposed 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
。 Expanded rent control that will apply to all private rental units in
Ontario
。 Legislation to allow for a vacant home tax
2016
•
$125 million five-year program to encourage construction of new
rental apartment buildings
by rebating a portion of development charges
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 updated low-ratio mortgage insurance eligibility requirements
for lenders wishing to use portfolio insurance
○
Maximum amortization 25 years
O $1 million maximum purchase price
○
Minimum credit score of 600
。 Property must be owner occupied
2016
•
•
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 C$0.5 - C$1 million increased from 5% to 10%
2014
CMHC discontinued offering mortgage insurance on second homes
and to self employed individuals without 3rd party income validation
2012
•
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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