Q3 2019 Fixed Income Investor Presentation
Canadian Mortgage Market Regulatory Developments
◉ Max. amortization
◉
reduced to 35 yrs. from
40
Set min. down payment
to 5%
Min. credit score of 620
■ 45% max. TDS ratio
■
New loan documentation
standards
Reduce max.
amortization to 30
yrs. from 35 yrs.
■ Refinancing max.
LTV lowered to 85%
from 90%
Second home mortgage
insurance no longer
available
Tightened income
verification rules for Self-
Employed borrowers
HELOC insurance no
longer available
Insurance premiums
increased by 15%, on
average, for all LTV ranges
Jul 2008
3
Feb 2010
Jan 2011
4
2
■ Borrowers to meet
standards for a five-
year fixed mortgage 1
Refinancing max. LTV
lowered to 90% from
95%
"
■
Set min. down
payment for non-
owner occupied
properties to 20%
1 Even if borrowers choose a mortgage with a lower interest rate and shorter term.
Regulations related to Mortgage Default Insurance
CIBC Q3 2019 Fixed Income Investor Presentation
5
Jun 2012
Jun 2015
Apr-May 2014
6
40
40
Refinancing max. LTV lowered to
80% from 85%
Insurance on properties valued
greater than 1MM no longer
available
Reduce max. amortization to 25
yrs. from 30 yrs.
Max. GDS and TDS ratios set to 39%
and 44%, respectively
Maximum LTV for HELOCS lowered
Insurance
premiums for
loans with LTV
from 90% to
95% increased
by 15%
to 65% (from 80%)
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