Advisories
Advisory 20
NHA INSURED MORTGAGES - INCREASE TO MAX LOAN TO VALUE
Section 25200 of the Capital Utilization Policy - Residual Mortgages states that "For NHA insured loans; the mortgage loan will not exceed 95% of the purchase price or the appraisal value of the property, whichever is the lesser, and shall not exceed NHA insured limits."
We have been advised that CMHC are now offering a new product - CMHC Flex 100 - that allows for a loan to value (LTV) which ranges from 95.01% - 100%. As this product and those offered by other NHA insurers would fall outside the existing policy and would require policy exceptions, we are prepared to approve changes to this section allowing for a maximum of LTV of100%.
For those credit unions that wish to change their Capital Utilization Policy, please insure you obtain board approval for this amendment. You will not require any further approval from CUDIC as this Advisory 20 will constitute pre approval of this change only.
Should you have any questions, please direct them to your assigned Analyst.
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