Insurable Housing Loan Regulations (SOR/2012-282)

Marginal note:Insurability

• 3 (1) Subject to subsections (4) to (6), a housing loan must meet the criteria set out in section 4 and, as applicable, section 5, 6 or 6.1 for the Corporation to be able to provide insurance against risks relating to it.

• Marginal note:Replacement of security and increased balance

  (2) For greater certainty, if an insured housing 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 for the Corporation to be able to provide insurance against risks relating to it.

• Marginal note:Other modifications

  (3) If any other modification is made to an insured housing loan that requires the payment of an additional housing loan 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 for the Corporation to be able to provide insurance against risks relating to it. Any modification that does not require the payment of an additional housing loan insurance premium does not affect the Corporation’s ability to provide insurance.

• Marginal note:Loan workout

  (4) The Corporation may provide insurance against risks relating to a housing 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 housing loan insurance claim on an outstanding insured housing loan if it meets the criteria set out in paragraph 4(a) and does not require the payment of an additional housing loan insurance premium.

• Marginal note:Loan discharge

  (5) The Corporation may provide insurance against risks relating to a housing loan whose purpose is to discharge the outstanding balance of a prior insured housing 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 housing loan insurance premium.

• Marginal note:Particular categories of loan

  (6) The Corporation may provide insurance against risks relating to a housing loan if the loan is

  • (a) made to a borrower that is owned, otherwise guaranteed or subsidized by one of the following entities, and the purpose of the loan, guarantee or subsidy is to carry out a government social housing program:

    • (i) a provincial or municipal government,

    • (ii) an agency or an agent corporation of the federal Crown, other than the Corporation, or

    • (iii) an agency, agent corporation, mandatary corporation or housing corporation of a provincial or municipal government;

  • (b) in relation to a project that is owned, otherwise guaranteed or subsidized by an entity referred to in paragraph (a), and the purpose of the loan, guarantee or subsidy is to carry out a government social housing program;

  • (c) secured by a property consisting of more than four family housing units, together with any associated property interests or real rights, structures and facilities; or

  • (d) secured by a property situated on a reserve as defined in subsection 2(1) of the Indian Act.