Advisories
Advisory 21
MORTGAGE LENDING – CHANGE IN REGULATIONS
On August 17, 2007, an Order in Council was issued amending Section 16 of the Regulations permitting a credit union to provide mortgage financing up to 80% of the value of a property without the requirement of having mortgage insurance. This was in reaction to the federal government amending the Bank Act to permit federally incorporated banks this level of financing.
Credit union loan policies currently have the 75% restriction embedded within the policy. Rather than have each credit union submit a revised policy to NSCUDIC for approval as per Section 15 of the Regulations, this Advisory will provide the necessary approval for each credit union to change the section of its loan policy that deals with this matter.
It will still be necessary to have your Board of Directors approve the change before the credit union can act on the 80% uninsured financing on the value of the property.
August 31, 2007
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