Manulife Bank is “ready to do business” for Canadian homeowners who have as little as a 20% down payment, with no high ratio premium required. As of today, the bank’s Manulife One account, that includes a client’s mortgage as well as other debts, is now available up to 80% loan to value, without high ratio insurance.

New federal legislation that came into effect April 20 moved the minimum downpayment requirement from 25% to 20%. Previously, anyone wanting a mortgage greater than 75% of their home’s value was required to pay a lump sum premium to a third party insurance company to protect banks from possible loan defaults. This premium ranged anywhere from one% to 3.25% of the mortgage amount, based on the ratio of the loan amount to the value of the home.

The change in legislation moved the maximum ratio available without paying a high ratio premium up to 80% and Manulife Bank is among the first banks to offer this benefit to Canadians.

“This is great news for prospective homeowners,” says Roman Fedchyshyn, president and CEO of Manulife Bank of Canada. “The cost of a mortgage is daunting enough. So, to be able to eliminate this fee for some mortgages, including other debts, means keeping more money in the pockets of our customers.”