Covered Bond Program Overview
Canadian Mortgage Market Regulatory Developments
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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%
HELOC insurance no
longer available
Jul 2008
2
3
Feb 2010
Mar 2011
4
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Second home mortgage
insurance no longer
available
Tightened income
verification rules for Self-
Employed borrowers
Insurance premiums
increased by 15%, on
average, for all LTV ranges
Min. down payment for
new insured mortgage
will increase from 5% to
10% for the portion of
the house price above
CAD 500,000
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
5
7
9
Jun-Jul 2012
Jun 2015
Apr-May 2014
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 to 65% (from 80%)
Aug 2016
Jan 2017
Feb 2016
Oct 2016
6
8
Insurance premiums
for loans with LTV
from 90% to 95%
increased by 15%
Vancouver
introduced 15%
Foreign Buyers' Tax
10
Vancouver
introduced Empty
Homes Tax of 1%
of the assessed
value of the home
1 Even if borrowers choose a mortgage with a lower interest rate and shorter term.
CIBC
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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%
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Regulations related to Mortgage Default Insurance
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