Global Banking and Markets Financial Performance
Housing Policy Developments in Canada
Consistent policy initiatives to maintain a balanced and sustainable market
2016
2017
2018
2019
.
.
.
•
.
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
。 CAD $1MM max. purchase
price
o Minimum credit score of 600
。 Owner-occupied property
Elimination of primary residence
tax exemption for foreign
buyers
Min. down payment on insured
increased from 5% to 10% (for
homes CAD $0.5-$1.0MM)
British Columbia: 15% land
transfer tax on non-resident
purchases in Metro Vancouver
introduced
Ontario: 16 measures aimed to
slow rate of house price
appreciation
Key aspects include:
○
15% non-resident
speculation tax
o Expanded rent control to all
private rental units in Ontario
。 Vacant home tax
CAD $125MM five-year
program to encourage
construction of new rental
apartment buildings
• 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
•
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
$1.6B through FY2021 toward
the goal of building 114,000
affordable housing units in the
next 10 years
•
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 $3MM
Scotiabank®
53
53View entire presentation