Insurable Housing Loan Regulations — 1
Definitions 1 (1) The following definitions apply in these Regulations. Act means the National Housing Act . ( Loi ) credit score means a score that is (a) issued by a credit reporting agency that is incorporated by or under an Act of Parliament or of the legislature of a province; and (b) based on a scale that is substantially equivalent to a scale used on June 26, 2011 by a credit reporting agency that was at that time incorporated by or under an Act of Parliament or of the legislature of a province. ( pointage de crédit ) eligible residential property means a property consisting of one to four family housing units, together with any associated property interests or real rights, structures and facilities. ( immeuble résidentiel admissible ) first-time home buyer means an individual who, at the time of purchasing an eligible residential property, (a) has never before purchased an eligible residential property in Canada; (b) has not, in the calendar year in question or at any time in the four preceding calendar years, occupied as a principal place of residence an eligible residential property in Canada that was owned, whether jointly with another person or otherwise, by (i) the individual, or (ii) their current spouse or common-law partner; or (c) is an individual who (i) is living separate and apart from their spouse or common-law partner because of a breakdown of their marriage or common-law partnership, (ii) has been living separate and apart from their spouse or common-law partner for a period of at least 90 days, and (iii) began living separate and apart from their spouse or common-law partner in the calendar year in question or at any time in the four preceding calendar years. ( acheteur d’une première habitation ) funded means, in respect of a housing loan, that money under the loan has been advanced to the borrower. ( financé ) gross debt service ratio means the percentage of a borrower’s gross annual income that is required to cover the annual payments associated with the eligible residential property against which a housing loan is secured. ( coefficient d’amortissement brut de la dette ) high ratio loan means a housing loan that is secured by an eligible residential property and whose principal amount, together with the outstanding balance of any loan having an equal or prior claim against the eligible residential property, is greater than 80% of the value of the eligible residential property at the time the loan is approved. ( prêt à ratio élevé ) loan for the addition of family housing units means a housing loan that is secured by an eligible residential property, whose purpose is the improvement, conversion or development of the eligible residential property to increase the number of family housing units that it contains and whose only other purpose may be the discharge of the outstanding balance of a prior loan against the property. ( prêt pour l’ajout de logements familiaux ) low ratio loan means a housing loan that is secured by an eligible residential property and whose principal amount, together with the outstanding balance of any loan having an equal or prior claim against the eligible residential property, is less than or equal to 80% of the value of the eligible residential property at the time the loan is approved. ( prêt à faible ratio ) newly built , in respect of an eligible residential property, means that (a) the property has never been occupied for residential purposes; or (b) in the case of a condominium unit or a private portion of a divided co-ownership, the property has never been occupied for residential purposes other than during a period in which the borrower assumed occupancy on an interim basis before the registration of the condominium declaration or declaration of co-ownership or before taking possession. ( nouvellement construit ) quarter means any period of three consecutive months beginning on January 1, April 1, July 1 or October 1. ( trimestre ) total debt service ratio means the pe