Federal government actions to curb housing risks since 2008



Since the 2008 recession, Ottawa has made mortgage policy changes six times. In addition to the recent changes outlined above, here’s a timeline of changes.

October 2016

OSFI requires smaller banks to perform a stress test requiring low equity borrowers (less than 20 per cent down payment) to qualify for the Bank of Canada’s posted five-year rate; and borrowers with a down payment at or above 20 per cent (low ratio) to meet these same eligibility requirements.

December 2015

The federal government increased the minimum down payment for insured high-ratio mortgages for anyone buying a home valued between $500,000 - $1 million to 10 per cent down from 5 per cent down.

June 2012

The maximum amortization period was reduced to 25 years from 35 years for high-ratio insured mortgages. A new stress test was implemented. To qualify for a high-ratio mortgage, a home buyer’s debt costs could be no more than 44 per cent of their income. Home owners refinancing could borrow a maximum of 80 per cent of a property’s value, down from 85 per cent. Government-backed insured high-ratio mortgages were available only on homes valued at less than $1 million.

January 2011

The government reduced the maximum length of an insured high-ratio mortgage to 30 years from 35 years. The maximum amount home owners refinancing could borrow was reduced to 85 per cent from 90 per cent.

February 2010

The government lowered the maximum amount home owners could borrow when refinancing a mortgage to 90 per cent of a home’s value, from 95 per cent. A new rule required owners not living on a property to have a minimum 20 per cent down payment if they needed government-backed mortgage insurance.

July 2008

Then Finance Minister Jim Flaherty reduced the maximum length of an insured high-ratio mortgage to 35 years from 40 years.


***As noted from the Real Estate Board of Greater Vancouver Website***


Link to site and article:


If you will be effected and will need some help in finding a home quickly before the new mortgage requirements are implemented on January 1. Please contact me at or by mobile: 604-512-9208.


No comments

Post Your Comment:

Your email will not be published
Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.