BC Mortgage Rules — the full reference

Maximum home purchase price eligible for default mortgage insurance (CMHC, Sagen, Canada Guaranty). Raised from $1,000,000 to $1,500,000 effective December 15, 2024. Below this cap, buyers can put as little as 5% down on the first $500,000 + 10% on the portion above. Above this cap, conventional 20%-down mortgage required.

CMHC-insured mortgages permit 30-year amortization (vs. standard 25-year max) for two specific borrower categories: (1) all first-time home buyers regardless of property type, and (2) any buyer purchasing newly constructed housing (new build). Effective December 15, 2024.

Federally-regulated lenders (banks, federal credit unions) must qualify uninsured borrowers at the GREATER of (a) the contract rate + 2 percentage points, or (b) the Bank of Canada qualifying rate (currently 5.25%). Insured borrowers are qualified at the same higher-of test by CMHC. Applies to all conventional mortgages and all renewals when borrower switches lenders.

Effective November 21, 2024, federally-regulated lenders may renew an existing uninsured mortgage with the same lender WITHOUT re-applying the stress test, even where the borrower would no longer qualify under current B-20 rules. Applies to renewals only; does not apply to refinances or switch-lender renewals.

Loan-to-Value (LTV) is the ratio of the mortgage loan amount to the lower of (a) the purchase price or (b) the appraised value of the property, expressed as a percentage. LTV is the binding constraint on whether a mortgage requires default insurance: any loan above 80% LTV (i.e., a down payment below 20%) requires CMHC, Sagen, or Canada Guaranty default insurance under federal rules. CMHC default-insurance premium tiers are LTV-banded (95.01–90.00% LTV, 90.01–85.00% LTV, etc.), with higher LTV brackets carrying higher premium percentages. OSFI Guideline B-20 also references LTV in its underwriting expectations for federally regulated lenders. The Bank Act and the Insurance Companies Act set the statutory 80% LTV ceiling above which insurance is required.