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  3. Mortgage Eligibility and Requirements

Mortgage Eligibility and Requirements

Eligible investments
  • New purchases and refinances
  • Applicable for first, second, and third mortgages
Lending requirements
  • Up to 90% loan-to-value
  • The lender sets the interest rate, which must be between 2% and 30% (subject to CRA guidelines)
  • Borrower must be unrelated and at “arm’s length” as per Section 251/252 of the Income Tax Act
Eligible plan types
  • Funds must be lent from a CWB Trust Services self-directed account holding a RRSP, RIF, TFSA, LIRA, or LIF
Appraisal requirements
  • A current (within one year) AACI or CRA real estate appraisal, or
  • A property tax assessment from the current year
Property requirements
  • Mortgages permitted on real property only
  • Can be used to purchase residential property (owner occupied, vacation home, or rentals), commercial property, and raw land
  • Property must be located in Canada (excluding Quebec)
  • Leased land and property is ineligible