Eligible Mortgage Loan Regulations (SOR/2012-281)
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Regulations are current to 2024-10-30 and last amended on 2020-12-22. Previous Versions
Exceptions
Marginal note:High ratio loans — before October 15, 2008
7 (1) The criteria set out in paragraphs 5(1)(a) to (j) do not apply to a high ratio loan that meets the requirements of a mortgage or hypothecary loan insurance product that was offered by a mortgage insurer before October 15, 2008 if, before that date,
(a) the mortgage insurer received a mortgage or hypothecary insurance application in respect of the loan;
(b) the lender made a legally binding commitment to make the loan to the borrower; or
(c) the borrower entered into a legally binding agreement of purchase and sale in respect of the eligible residential property against which the loan is secured.
Marginal note:High ratio loans — October 15, 2008 to April 18, 2010
(2) The criteria set out in paragraphs 5(1)(a), (b), (c), (d), (h) and (i) do not apply to a high ratio loan if
(a) at the time the loan is approved, its principal amount, together with the outstanding balance of any loan having an equal or prior claim against the eligible residential property against which it is secured, is less than or equal to 95% of the value of the eligible residential property;
(b) it is scheduled to amortize over a period that does not exceed 35 years; and
(c) during the period beginning on October 15, 2008 and ending on April 18, 2010
(i) the mortgage insurer received a mortgage or hypothecary insurance application in respect of the loan,
(ii) the lender made a legally binding commitment to make the loan to the borrower, or
(iii) the borrower entered into a legally binding agreement of purchase and sale in respect of the eligible residential property against which the loan is secured.
Marginal note:High ratio loans — April 19, 2010 to March 17, 2011
(3) The criteria set out in paragraphs 5(1)(a), (b), (c), (d) and (h) do not apply to a high ratio loan if
(a) at the time the loan is approved, its principal amount, together with the outstanding balance of any loan having an equal or prior claim against the eligible residential property against which it is secured, is less than or equal to
(i) 95% of the value of the eligible residential property, if the purpose of the loan includes the purchase of that property, and
(ii) 90% of the value of the eligible residential property, if the purpose of the loan does not include the purchase of that property;
(b) the loan is scheduled to amortize over a period that does not exceed 35 years;
(c) the mortgage insurer has calculated the gross debt service ratio and total debt service ratio in accordance with the method set out in subsection 5(3); and
(d) during the period beginning on April 19, 2010 and ending on March 17, 2011,
(i) the mortgage insurer received a mortgage or hypothecary insurance application in respect of the loan,
(ii) the lender made a legally binding commitment to make the loan to the borrower, or
(iii) the borrower entered into a legally binding agreement of purchase and sale in respect of the eligible residential property against which the loan is secured.
Marginal note:High ratio loans — March 18, 2011 to June 21, 2012
(4) The criteria set out in paragraphs 5(1)(a), (b), (c), (d) and (h) do not apply to a high ratio loan if
(a) at the time the loan is approved, its principal amount, together with the outstanding balance of any loan having an equal or prior claim against the eligible residential property against which it is secured, is less than or equal to
(i) 95% of the value of the eligible residential property, if the purpose of the loan includes the purchase of that property, and
(ii) 85% of the value of the eligible residential property, if the purpose of the loan does not include the purchase of that property;
(b) the loan is scheduled to amortize over a period that does not exceed 30 years;
(c) the mortgage insurer has calculated the gross debt service ratio and total debt service ratio in accordance with the method set out in subsection 5(3); and
(d) during the period beginning on March 18, 2011 and ending on June 21, 2012,
(i) the mortgage insurer received a mortgage or hypothecary insurance application in respect of the loan,
(ii) the lender made a legally binding commitment to make the loan to the borrower, or
(iii) the borrower entered into a legally binding agreement of purchase and sale in respect of the eligible residential property against which the loan is secured.
Marginal note:High ratio loans — June 22, 2012 to July 8, 2012
(5) The criteria set out in paragraphs 5(1)(a), (b), (c), (d) and (h) do not apply to a high ratio loan if
(a) the loan meets the criteria set out in paragraphs (4)(a) to (c); and
(b) during the period beginning on June 22, 2012 and ending on July 8, 2012, the mortgage insurer received a mortgage or hypothecary insurance application in respect of the loan and the loan is funded not later than
(i) December 31, 2012, or
(ii) June 30, 2013, if it is documented as being scheduled to be funded not later than December 31, 2012 but is delayed due to unforeseen circumstances beyond the borrower’s control.
Marginal note:High ratio loans — June 22, 2012 to February 14, 2016
(6) The criterion set out in paragraph 5(1)(a) does not apply to a high ratio loan if, at the time the loan is approved, its principal amount, together with the outstanding balance of any loan having an equal or prior claim against the eligible residential property against which it is secured, is less than or equal to 95% of the value of the eligible residential property and
(a) during the period beginning on June 22, 2012 and ending on July 8, 2012, the mortgage insurer received a mortgage or hypothecary insurance application in respect of the loan and the loan was not funded in accordance with paragraph (5)(b);
(b) during the period beginning on July 9, 2012 and ending on December 10, 2015
(i) the mortgage insurer received a mortgage or hypothecary insurance application in respect of the loan,
(ii) the lender made a legally binding commitment to make the loan to the borrower, or
(iii) the borrower entered into a legally binding agreement of purchase and sale in respect of the eligible residential property against which the loan is secured; or
(c) during the period beginning on December 11, 2015 and ending on February 14, 2016, the mortgage insurer received a mortgage or hypothecary insurance application in respect of the loan and the loan is funded not later than
(i) July 1, 2016, or
(ii) December 31, 2016, if it is documented as being scheduled to be funded not later than July 1, 2016 but is delayed due to unforeseen circumstances beyond the borrower’s control.
- SOR/2016-9, s. 3
Marginal note:Low ratio loans — before October 15, 2008
8 (1) The criterion set out in paragraph 6(1)(a) does not apply to a low ratio loan in respect of which the mortgage insurer received a mortgage or hypothecary insurance application before October 15, 2008 if it meets the requirements of a mortgage or hypothecary loan insurance product that was offered by the mortgage insurer before that date.
Marginal note:Low ratio loans — October 15, 2008 to April 17, 2011
(2) The criterion set out in paragraph 6(1)(a) does not apply to a low ratio loan in respect of which the mortgage insurer received a mortgage or hypothecary insurance application during the period beginning on October 15, 2008 and ending on April 17, 2011.
Marginal note:Low ratio loans — before July 1, 2016
(3) The criterion set out in paragraph 6(1)(d) does not apply to a low ratio loan if the mortgage insurer received a mortgage or hypothecary insurance application in respect of the loan — or in respect of the portfolio of loans to which the loan will belong for insurance purposes — before July 1, 2016, unless the application has been denied or the loan has ceased to be insured under insurance resulting from the application.
Marginal note:Low ratio loans — March 24, 2020 to December 31, 2020
(4) The criteria set out in paragraphs 6(1)(e) to (g) do not apply to a low ratio loan if
(a) the loan was funded before March 20, 2020;
(b) the purpose of the loan
(i) includes the purchase of the eligible residential property against which it is secured,
(ii) is the discharge of the outstanding balance of a prior low ratio loan, or
(iii) is the refinancing of a loan that is secured by an eligible residential property;
(c) the amortization schedule is not to exceed 30 years from the day on which the loan was funded; and
(d) the mortgage insurer received a mortgage or hypothecary insurance application in respect of the loan – or in respect of the portfolio of loans to which the loan will belong for insurance purposes – during the period beginning on March 24, 2020 and ending on December 31, 2020.
- SOR/2016-9, s. 4
- SOR/2020-296, s. 1
Transitional Provisions
Marginal note:High ratio loans
9 (1) A high ratio loan is to be governed by these Regulations as they read on October 16, 2016 if, on any day before October 17, 2016,
(a) the mortgage insurer received a mortgage or hypothecary insurance application in respect of the loan;
(b) the lender made a legally binding commitment to make the loan to the borrower; or
(c) the borrower entered into a legally binding agreement of purchase and sale in respect of the eligible residential property against which the loan is secured.
Marginal note:Low ratio loans
(2) A low ratio loan is to be governed by these Regulations as they read on October 16, 2016
(a) if, on any day before November 29, 2016,
(i) the mortgage insurer received a mortgage or hypothecary insurance application in respect of the loan,
(ii) the lender made a legally binding commitment to make the loan to the borrower, or
(iii) the borrower entered into a legally binding agreement of purchase and sale in respect of the eligible residential property against which the loan is secured; and
(b) if the condition referred to in paragraph (a) was met on or after October 17, 2016, the loan is funded not later than
(i) April 30, 2017, or
(ii) October 31, 2017, if the loan is documented as being scheduled to be funded not later than April 30, 2017 but was delayed due to unforeseen circumstances beyond the borrower’s control.
- SOR/2017-270, s. 3
- Date modified: