Vol. 150, No. 3 — February 10, 2016

Registration

SOR/2016-10 February 3, 2016

NATIONAL HOUSING ACT

Regulations Amending the Insurable Housing Loan Regulations

The Minister of Finance, having consulted the Governor of the Bank of Canada and the Superintendent of Financial Institutions, pursuant to subsection 8.1(1) (see footnote a) of the National Housing Act (see footnote b), makes the annexed Regulations Amending the Insurable Housing Loan Regulations.

Ottawa, February 2, 2016

William Francis Morneau
Minister of Finance

Regulations Amending the Insurable Housing Loan Regulations

Amendments

1 Subsection 1(1) of the Insurable Housing Loan Regulations (see footnote 1) is amended by adding the following in alphabetical order:

Act means the National Housing Act. (Loi)

2 (1) Paragraph 5(1)(a) of the Regulations is replaced by the following:

(2) Subsection 5(1) of the Regulations is amended by striking out “and” at the end of paragraph (i), by adding “and” at the end of paragraph (j) and by adding the following after paragraph (j):

3 Section 6 of the Regulations is amended by striking out “and” at the end of paragraph (a) and by adding the following after paragraph (b):

4 (1) The portion of subsection 7(1) of the Regulations before paragraph (a) is replaced by the following:

High ratio loans — before October 15, 2008

7 (1) The criteria set out in paragraphs 5(1)(a) to (j) do not apply to a high ratio loan that meets the requirements of a housing loan insurance product that was offered by the Corporation before October 15, 2008 if, before that date,

(2) Subsection 7(2) of the Regulations is replaced by the following:

High ratio loans — October 15, 2008 to April 18, 2010

(2) The criteria set out in paragraphs 5(1)(a), (b), (c), (d), (h) and (i) do not apply to a high ratio loan if

(3) The portion of subsection 7(3) of the Regulations before paragraph (b) is replaced by the following:

High ratio loans — April 19, 2010 to March 17, 2011

(3) The criteria set out in paragraphs 5(1)(a), (b), (c), (d) and (h) do not apply to a high ratio loan if

(4) The portion of subsection 7(4) of the Regulations before paragraph (b) is replaced by the following:

High ratio loans — March 18, 2011 to June 21, 2012

(4) The criteria set out in paragraphs 5(1)(a), (b), (c), (d) and (h) do not apply to a high ratio loan if

(5) Subsection 7(5) of the Regulations is replaced by the following:

High ratio loans — June 22, 2012 to July 8, 2012

(5) The criteria set out in paragraphs 5(1)(a), (b), (c), (d) and (h) do not apply to a high ratio loan if

High ratio loans — June 22, 2012 to February 14, 2016

(6) The criterion set out in paragraph 5(1)(a) does not apply to a high ratio loan if, at the time the loan is approved, its principal amount, together with the outstanding balance of any loan having an equal or prior claim against the eligible residential property against which it is secured, is less than or equal to 95% of the value of the eligible residential property and

5 (1) Subsection 8(1) of the Regulations is replaced by the following:

Low ratio loans — before October 15, 2008

8 (1) The criteria set out in paragraphs 6(a) and (b) do not apply to a low ratio loan in respect of which the Corporation received a housing loan insurance application before October 15, 2008 if it meets the requirements of a housing loan insurance product that was offered by the Corporation before that date.

(2) Section 8 of the Regulations is amended by adding the following after subsection (2):

Low ratio loans — before July 1, 2016

(3) The criterion set out in paragraph 6(d) does not apply to a low ratio loan if the Corporation received a housing loan insurance application in respect of the loan — or in respect of the portfolio of loans to which the loan will belong for insurance purposes — before July 1, 2016, unless the application has been denied or the loan has ceased to be insured under insurance resulting from the application.

Transitional Provision

6 The criteria set out in paragraphs 5(1)(k) and 6(c) do not apply to a loan that is part of a pool of loans on the direct basis of which marketable securities were issued before July 1, 2016 during the period beginning on that day and ending on December 31, 2021.

Coming into Force

7 (1) These Regulations, except subsection 2(1) and section 4, come into force on the later of July 1, 2016 and the day on which they are published in the Canada Gazette, Part II.

(2) Subsection 2(1) and section 4 are deemed to have come into force on December 11, 2015.

N.B. The Regulatory Impact Analysis Statement for these Regulations appears following SOR/2016-9, Regulations Amending the Eligible Mortgage Loan Regulations.