Internal FAQ describing changes to the Scotia Total Equity Plan (STEP) Global Limit. Effective November 1, 2023, impacted STEP accounts (opened or last refinanced on/after Sept 15, 2012 with STEP Global Limit above 65% LTV) will see their STEP Global Limit reduced monthly over 25 years (300 months) until it reaches 65% of the property’s lending/appraised value. The document explains which accounts are exempt, the monthly reduction mechanics (Monthly Adjustment Factor), customer communication plans, effects on existing account limits/balances and refinances, and operational notes for restructures, ALI, and complaints.
Questions this document answers
Reductions start November 1, 2023; first reduction applied on November 5, 2023 (and on the 5th of each month thereafter).
STEPs opened or last refinanced on or after September 15, 2012 with a STEP Global Limit above 65% loan-to-value (LTV).
STEPs opened or last refinanced before September 15, 2012 are exempt; they will show "Not Applicable" in the STEP Utilization Maximums field.
Over 25 years, i.e., 300 months; reductions occur monthly and are spread evenly over that period.
Monthly Adjustment Factor = (Original STEP Global Limit − 65% of Lending/Appraised Value) ÷ 300 months.