Regulatory Alerts2011-06-10
Added · Updated
Summary of New Prudential Measures for Property Mortgage Loans
The regulator issued new prudential measures imposing stricter Loan-to-Value (LTV) ratios for property mortgage loans based on property type and borrower income sources. Owner-occupied residential loans now face maximum LTVs of 50% or 40% for high-value properties, while non-owner occupied and commercial loans are capped at 50% or 40% regardless of value. Net worth-based mortgage loans for residential properties are restricted to a 40% LTV, with specific loan caps applied to lower-value owner-occupied segments.
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