Scotiabank Track Record

Mortgage Policy Developments in Canada 2016 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, currently at 4.64% CMHC updated low-ratio mortgage insurance eligibility requirements for lenders wishing to use portfolio insurance Maximum amortization 25 years $1 million maximum purchase price Minimum credit score of 600 - Property must be owner occupied • 2015 • 2014 . 2012 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 Ministry of Finance launched a public consultation process regarding lender risk sharing. Comments are required to be submitted by the end of 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% CMHC discontinued offering mortgage insurance on second homes and to self employed individuals without 3rd party income validation • 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%) 36

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