Regulatory Alerts2016-03-24
Added · Updated
Interpretations for the Regulations Governing the Extension of Housing Loans in Specific Areas and Land Loans by Financial Institutions
Financial institutions must exclude from the housing loan definition any property with a residential-commercial or residential-office title if used for registered business and verified by site visit. Loan amount increases via additional collateral are classified as increases for other reasons, and the 10% loan threshold is calculated based on the lower of acquisition cost or appraised land value. For land loans, institutions may use appraised value if land was acquired via inheritance, gift, or pre-2010 transaction without proof, but must require transaction cost documents for other acquisitions. Existing land loans renewed after December 31, 2010, cannot have increased balances, though loans with excessive loan-to-value ratios due between December 31, 2010, and December 31, 2011, receive a one-year adjustment period.
More like this from CBC
We email you every new CBC publication the day it's published.