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Eligible Mortgage Loan Regulations

Version of section 6 from 2013-01-01 to 2016-06-30:

Marginal note:Low ratio loans

 A low ratio loan must meet the following criteria:

  • (a) the loan agreement must establish scheduled principal and interest payments that will begin reducing the outstanding principal in accordance with the overall amortization schedule agreed to at the making of the loan, commencing on

    • (i) the day on which the loan is funded,

    • (ii) the day on which the agreement of purchase and sale closes, or

    • (iii) the day on which the improvement, conversion or development of the eligible residential property is completed; and

  • (b) 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 greater than 60% of the value of the eligible residential property, at least one of its borrowers or guarantors must have a credit score that is greater than or equal to 580.

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