Appendix: 1996 RGB Mortgage Survey
Note: the following table has been split to accommodate screen viewing.
For proper interpretation, the three portions should be read across.
4. Lending Standards and Relinquished Rental Income,
Longitudinal Study
Loan to Value
Lending ========================
Inst. 1996 1995 1994
A-03 75% 75% -
A-04 65% 65% -
B-27 70% 70% 70%
B-29 50-60% 60% -
B-62 75% 75% 75%
B-63 75% - 75%
B-66 70% NR 70%
B-68 70% 70% 70%
B-70 NR NR NR
C-02 80% 80% NR
C-05 70-75% 75% 75%
C-09 75% 75% -
C-30 75% - 75%
C-34 75% - 75%
SL-15 70% 70% NR
Avg 72.5% 73.3% 72.0%
Debt Service Coverage
Lending =======================================
Inst. 1996 1995 1994**
A-03 1.2% 1.2% min -
A-04 none 1.25% -
B-27 1.2% 1.2% min -
B-29 1.25% 1.25% -
B-62 1.15% min 1.15% min -
B-63 1.2% - -
B-66 1.3% NR -
B-68 1.2% min 1.2% min -
B-70 1.0% NR -
C-02 1.15% 1.15% min -
C-05 1.25% 1.25% min -
C-09 1.25% min 1.35% min -
C-30 1.25% min - 1.2% min
C-34 1.25% - 1.25% min
SL-15 1.25% min 1.25% min 1.2% min
Avg 1.21% 1.22% *
Rental Losses
Lending ==============================
Inst. 1996 1995 1994
A-03 5% 5% -
A-04 NR 6% -
B-27 1% 5% 2%
B-29 1% 3% -
B-62 6% 5% 5%
B-63 5% - 5%
B-66 6% NR 6%
B-68 5% 5% 6%
B-70 1% 1% 1%
C-02 3% 3% 3%
C-05 3% 5% 5%
C-09 5% 6% 6%
C-30 NR - 5%
C-34 3% - 3%
SL-15 1% NR NR
Avg 3.43% 4.29% 4.00%
Note: The difference between new interest rate and
refinancing interest rate is negligible.
NR: indicates no response to this question and
a "-" means that the lender did not respond
to the Mortgage Survey in this year.
* No average could be computed because of too few responses.
** The 1994 Mortgage Survey questionnaire did not ask
for lenders’ debt coverage ratio standards, though
some respondents did supply them.
Source: 1994, 1995 and 1996 Rent Guidelines Board Mortgage Surveys.