Credit Performance Review
Housing Policy Developments in Canada
Consistent policy initiatives to maintain a balanced and sustainable market
2019
⚫ British Columbia: Increase in
speculation tax on foreign and
domestic home owners who do
not pay income tax in BC from
0.5% of a property's assessed
value to 2%; additional school
tax levied on portion of a
property's value that exceeds
CAD 3 mn.
2018
Ontario: Elimination of rent
control on new rental units first
occupied on or before
November 1, 2018
British Columbia: Extension of
the Property Transfer Tax on
non-resident buyers.
Investment of more than CAD
1.6 bn through FY2021 toward
the goal of building 114,000
affordable housing units in the
next 10 years
Canada: OSFI imposes more
stringent stress tests for
uninsured mortgages, including
a minimum qualifying rate at the
greater of the five-year fixed
posted rate or the contractual
rate plus 200 bps, effective
January 1, 2018
•
2017
Ontario: 16 measures aimed to
slow rate of house price
appreciation
Key aspects include:
o 15% non-resident
speculation tax
o Expanded rent control to all
private rental units in Ontario
o Vacant home tax
oCAD 125 mn five-year
program to encourage
construction of new rental
apartment buildings
•
.
2016
Canada: Qualifying stress rate
for all new mortgage insurance
must be the greater of the
contract mortgage rate or the
Bank of Canada's conventional
five-year fixed posted rate
Low-ratio mortgage insurance
eligibility requirements updated
for lenders wishing to use
portfolio insurance:
O Maximum amortization 25
years
o CAD 1 mn maximum
purchase price
○ Minimum credit score of 600
。 Property must be owner
occupied
Elimination of primary residence
tax exemption for foreign
buyers
•
Minimum down payment on
insured mortgages on homes
valued CAD 0.5-1 mn
increased from 5% to 10%
British Columbia: 15% land
transfer tax on non-resident
purchases in Metro Vancouver
introduced
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