Eligible Mortgage Loan Regulations

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.