Office of the Superintendent of Financial Institutions
This report provides the Office of the Superintendent of Financial Institutions and the Bank of Canada with data on mortgages.
Sections 628 and 600 of the Bank Act and Section 495 of the Trust and Loan Companies Act.
This return applies to all deposit-taking institutions.
Certain information is published on a total-for-all institutions basis in Statistics Canada's key socioeconomic database (CANSIM).
Quarterly - calendar.
Provide name and phone number of person to contact regarding any questions about this return.
The return is to be completed within 45 days of calendar quarter-end.
This return analyzes mortgages made on the security of property and reported as Asset 3(b)(i)(A), (B) and 3(b)(ii) on the balance sheet. Included are data covering all insured and uninsured advances as well as completed loans, mortgages purchased by the institution. Mortgages purchased are to be reported net of premium or discount (see the instructions for the balance sheet for treatment of discount and premium). All mortgage loans secured by property (not just first mortgages) are to be reported. Exclude any loans where mortgages are taken as collateral security either at the time the loan is made or subsequently. Report all figures on a consolidated institution basis.
All amounts are to be expressed in thousands of Canadian dollar equivalents.
Portfolio Insured Mortgage
Individually Insured Mortgage
Vendor Take Back (VTB) Mortgages
Residential Interim Construction Mortgages
Properties with more than 4 units Reporting
Residential Properties reported under non-residential
Allowance for Expected Credit Loss
This part of the return reports increases and decreases of mortgages secured by property located in Canada.
Residency is determined by mailing address unless other information is available. Resident financials include public financial institutions and private financial institutions such as chartered banks, other deposit-taking institutions, insurance companies, pension funds, investment dealers, mutual funds, real estate investment trusts, and others of a similar nature. All other residents are classified as non-financial.
Mortgage renewals are defined as contractual agreements subsequent to the initial mortgage that maintain or shorten the amortization period and do not increase the principal amount (irrespective whether done at term expiration or prior to it, i.e. as full prepayment).
Mortgage refinancing is defined as a contractual agreement subsequent to the initial mortgage that does not qualify as a renewal using the above definition.
Related counterparty entities are defined to encompass all related counterparties including subsidiaries and SPEs.
A straight mortgage port with no change in principal is to be considered a collateral substitution and is not to be reported as an increase in mortgage lending. However, the porting of a mortgage that is accompanied with an increased principal amount is to be considered a form of refinancing and the entire amount is to be reported as such.
Report flows of mortgages from securitization (MBS or own vehicles) as either purchases of mortgages from under 1(b)(ii) or Sales of mortgages under 1(c)(ii).
Mortgages not recorded on the A4 due to a third party origination arrangement should be recorded under Section I (1)(b)(iii).
The values for insured and uninsured residential mortgages reported in (1)(b)(i)(A) + (1)(b)(i)(B) + (1)(b)(i)(C) + (1)(b)(i)(D) + Section I Memo Items Section B (1)(a) - Section I Memo Items Section A (4)(d) - Section I Memo Items Section B (2)(a) - Section I Memo Items Section B (2)(b) should sum to the total reported in A4 entries 6480 & 6481 over the period.
Lines (b)(i) through (b)(v)
Lines (c)(i) through (c)(iv)
Line (d) - Total
Line (1)(d)(i) - of which total mortgage loans extended to individuals
Line (1)(d)(ii) - of which total mortgage loans extended to corporations
Report the total amounts outstanding of mortgage loans secured by residential and non-residential property located outside of Canada in the appropriate categories.
Report the total allowance for expected credit losses as per Asset 3(b) of the balance sheet.
Report the total amount of mortgage loans outstanding. This total must agree with Asset 3(b) on the balance sheet.
These adjustments are intended to facilitate reporting by allowing small capitalized loan expenses such as legal fees and origination costs to be reported separately. Report the amount which balances the total mortgage amount to the M4 balance sheet. Subsequently, report the amount which is reported in the M4 and corresponds to the amount of total mortgage loans reported in the E2 minus any adjustment for balance sheet purposes.
Report the figures in number of units for mortgages in Canada.
Report the value in thousands of dollars for mortgages in Canada.
The numbers of mortgages reported here are to correspond to the values reported in Section I (1)(b).
Report the gross amount and number of non-conforming mortgage loans for residential properties at origination and outstanding based on the B20 guidelines as applicable to the reporting institution.
The Origination columns should report the amount and number of non-conforming loans originated within the quarter in question. The outstanding columns should report the total amount and number of non-conforming loans outstanding for the portfolio at the end of the quarter in question.
Report the gross amount and number of reverse mortgage loans for outstanding balances of residential properties.
Report the dollar amount of mortgages in each of the size categories set out in the Section. Use the original amount of the mortgage to determine in which category to place a mortgage.
The various totals shown in this section should correspond with the appropriate totals in Section I - prior to the allowance for expected credit losses.
Report the relevant amounts for lines (i), (ii)(A), (B) and Total Residential under the appropriate headings.
Residential Interim Construction Mortgages are to be reported for Insured and Uninsured Gross Mortgage Loans.
Farm Properties (i) and Non-Farm Properties (ii) are to be reported in two categories - Insured and Uninsured Gross Mortgage Loans.
The following table is to be used for the purpose of classifying non-residential other than farm properties:
Total Properties Located in Canada
Report amounts under the appropriate headings.
Total Properties Located Out of Canada
The total mortgage loans for insured and uninsured outstandings minus the total for the allowance for expected credit losses must agree with the total of Asset 3(b) on the Balance Sheet.
These adjustments are intended to facilitate reporting by allowing small capitalized loan expenses such as legal fees and origination costs to be reported separately. Report the amount which balances the total amount to the M4 balance sheet. Secondly, report the amount which is reported in the M4 and corresponds to the amount of total mortgage loans reported in the E2 minus any adjustment for balance sheet purposes.
In section IV report mortgage originations for the purchase of property. Otherwise use the same definitions as section III.
Report the applicable amounts on the appropriate lines.
Include all mortgages originated during the quarter.
1. Loan-To-Value Ratio (LTV Ratio) as at Report Date
The insurance here refers to mortgage default insurance provided by CMHC and other private insurers, segmented into individual insured and portfolio insured.
For mortgages newly defaulted in quarter, please report the I IFRS 9 Stage III expected credit loss assigned to these newly impaired mortgages.
Only report losses associated with the first mortgage. Do not include expected credit losses experienced on second and subsequent mortgages, or other lending activity.
Reported values should correspond to those occurring at the end of the quarter.
Report the total dollar amount of mortgage loans and all outstanding borrowings secured by the underlying property under the relevant LTV ratio band. The LTV ratio should be calculated in accordance with the principles set out in OSFI's Guideline B-20 (Residential Mortgage Underwriting Practices and Procedures). The LTV should be re-calculated upon any refinancing, and whenever deemed prudent, given changes to a borrower's risk profile or delinquency status, using an appropriate valuation/appraisal methodology.
1. Loan-To-Value Ratio (LTV Ratio) - Entire Portfolio – Residential
(a) Residential Mortgages - Primary Mortgage (Entire Portfolio).
Highlighted text Residential Mortgages Unencumbered & Residential Mortgages Quebec
(b) Residential Mortgages - Two or More Loans Secured Against the Property - Primary & Secondary Mortgages (Entire Portfolio)
2. Loan-To-Value Ratio (LTV Ratio) - Entire Portfolio - Non Residential
(a) Non Residential Mortgages - Primary Mortgage (Entire Portfolio)
(b) Non Residential Mortgages - Two or More Loans Secured Against the Property - Primary & Secondary Mortgages (Entire Portfolio)
(a) Residential Mortgages
(b) Non-Residential Mortgages
(c) Other - This line has been added to accommodate certain financial institutions' exceptional reporting needs and is not expected to be filled in for most financial institutions.
Report the total dollar amount for the appropriate ratio bands for loans originated (funded, purchased, etc.) during the reporting period. The Total Debt Service (TDS) ratio serves as a measure to assess the debt serviceability capacity of a borrower (or borrowers) and should be calculated in accordance with the principles set out in OSFI's Guideline B-20 (Residential Mortgage Underwriting Practices and Procedures) and in CMHC's requirements to qualify for mortgage insurance. The TDS ratio should incorporate factors such as (but not be limited to) principal and interest payments, heating costs, property taxes, 50% of condominium fees (if applicable), monthly payment amounts for other credit facilities, other sources of income, co-borrower and co-signor sources of income and own monthly payments on other credit facilities, etc.
Report the total dollar amount under the relevant Credit Bureau score bands for loans originated (funded, purchased, etc.) during the reporting period. When there is more than one Borrower, use the average of the Borrower's Credit Bureau Scores.
Report all applications in this section, both with and without property purchase agreements, including all applications for preapprovals.
Report residential mortgages individually insured by insurer. Include both high and low ratio mortgages but do not include mortgages insured through portfolio insurance.
Report value of residential mortgages by property usage as of origination only, there is no requirement to report changes in property usage after mortgage origination date. Additionally, in cases where it is not possible to identify the property usage the mortgage value can be reported under the category 'no end-use identified'.
The reference table below classifies common property types residential or non-residential. The general principle is that residential properties are non-institutional facilities for the long term lodging of individuals.
(1) The intention with the term 'retirement home' is to refer to institutional establishments. Mortgages on institutional retirement homes are to be classified as non-residential, whereas mortgages on individual condo units within buildings marketed to the elderly are to be classified as residential. The agencies acknowledge that this distinction may not always be simple to identify. As a result the agencies will accept retirement home being classified as either residential or non-residential for the time being; however, filing institutions are encouraged to move towards the intended classification.
(2) Construction financing can include a wide range of products that have historically been classified inconsistently and recorded under three categories (business loans, residential mortgages, and non-residential mortgages). The agencies do not require this reporting practice to be changed. As a result it will be considered acceptable to record construction financing under any of the three categories; provided that the categorization is re-examined once the construction activity is complete.
(3) The preferred reporting practice for mortgages on multi-unit residential properties is to include them under residential. However, it is acknowledged that some institution's legacy systems have included these mortgages under the non-residential category. Both approaches will be accepted for the time being; however, filing institutions are encouraged to move towards the intended classification.
(4) Mortgages on mixed office residential condo buildings are to be classified as non-residential. This is because individual condo units have separate ownership from the office portion of the building and therefore a mortgage on the office portion of the building should be classifies as non-residential.
The reference table below classifies various counterparty entities as individuals or corporations, where corporate is defined to include 'not for profit' organizations and quasi-corporations. The general principle is that counterparties are classified using a credit counterparty perspective. In the case of a default of the ultimate guarantor is an individual the loan should be classified as have an individual as the counterparty; however; if the ultimate guarantor is a non-individual (e.g. corporation, trust, co-operative) the loan should be classified as having a "corporation as the counterparty.
*** Using the credit counterparty principle, partnerships where the ultimate guarantor is an individual should be classified under the individual category; however, partnerships with a corporation as the ultimate guarantor should be classified as corporations.