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 new originations and to refinances — any increase in loan amount or remaining amortization. It does NOT apply to a straight switch at renewal (see osfi.b20.renewal_no_stress_test), and it never applied to renewing with the existing lender, which is not a new origination.

Effective November 21, 2024, a borrower renewing an uninsured mortgage may move it to a DIFFERENT federally-regulated lender without re-passing the B-20 stress test, provided it is a "straight switch" — the loan amount does not increase and the remaining amortization is not extended. Insured borrowers have had the same relief since January 2024. Renewing with the existing lender never required the test in the first place, because a renewal is not a new origination. A refinance — any increase in loan amount or extension of amortization — still triggers the full test, whoever the lender is. The practical effect is that a borrower at renewal can shop competing lenders on rate without re-qualifying, which is the reverse of the pre-2024 position where the incumbent lender knew the borrower had no exit.

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.