Is there provincial government legislation or policy that prohibits the financing of the PTT?
No. The provincial government sets the tax amount and collects the tax. But it has not enacted legislation or policy governing whether or not consumers may finance the PTT. • Is there federal government legislation or policy that prohibits financing the PTT? No. There is no federal government legislation or policy that prohibits the financing of the PTT, including the Bank Act, which does not restrict financing the PTT. However, the Bank Act, section 418(1) governs the loan-to-value ratio for mortgage insurance. It requires borrowers of any mortgage with a loan-to-value ratio of 80 per cent or more of the value of the property to buy insurance against default from a mortgage insurance company such as CMHC or Genworth Financial. (Note: Until April 2007, the ratio was 75 per cent or more). A loan-to-value ratio of less than 80 per cent is a conventional loan and does not require mortgage insurance. • Is it possible to finance the PTT? A borrower with a conventional mortgage may be able t
