Eligible Mortgage Loan Regulations

Marginal note:Eligibility

• 3 (1) Subject to subsections (4) and (5), to be an eligible mortgage loan, a mortgage or hypothecary loan must meet the criteria set out in section 4 and, as applicable, section 5 or 6.

• Marginal note:Replacement of security and increased balance

  (2) For greater certainty, if an insured mortgage or hypothecary loan is modified to both replace its security with a new eligible residential property and increase its outstanding balance, the increased portion is to be considered, for the purposes of these Regulations, as a new loan approved on the day on which the increase is approved, which must meet the criteria that apply on that day to be an eligible mortgage loan.

• Marginal note:Other modifications

  (3) If any other modification is made to an insured mortgage or hypothecary loan that requires the payment of an additional mortgage or hypothecary insurance premium, the loan is to be considered, for the purposes of these Regulations, as a new loan approved on the day on which the modification is approved, which must meet the criteria that apply on that day to be an eligible mortgage loan. Any modification that does not require the payment of an additional mortgage or hypothecary insurance premium does not affect the eligibility of the loan.

• Marginal note:Loan workout

  (4) A mortgage or hypothecary loan that is made or modified in relation to a loan workout whose purpose is to reduce or avoid losses on a real or potential mortgage or hypothecary insurance claim on an outstanding insured mortgage or hypothecary loan is itself an eligible mortgage loan if it meets the criteria set out in paragraph 4(a) and does not require the payment of an additional mortgage or hypothecary insurance premium.

• Marginal note:Loan discharge

  (5) A mortgage or hypothecary loan whose purpose is to discharge the outstanding balance of a prior insured mortgage or hypothecary loan is an eligible mortgage loan if the new loan meets the criteria to which the prior loan was subject at the time of the discharge and does not require the payment of an additional mortgage or hypothecary insurance premium.