Regulatory Alerts2024-11-21
Notice Regarding Removal of Minimum Qualifying Rate Requirement for Renewed Uninsured Hypothecary Loans with New AMF-Regulated Lenders
The Autorité des marchés financiers (AMF) has immediately removed the Minimum Qualifying Rate requirement for AMF-regulated lenders renewing uninsured hypothecary loans with a new financial institution. This exemption applies provided the original lender was AMF-recognized, the initial MQR test was met, and the renewal involves no increase in loan amount or amortization period. Lenders must maintain prudent underwriting standards, including accurate gross and total debt service ratio calculations and thorough credit history assessments.
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