Monthly Archives: February 2018

Month: February 2018 OSFI’s new mortgage rules will decrease home affordability

  OFSI’s (Canada’s banking regulator) has published final guidelines for its mortgage qualification rule. It will impose tighter standards on the uninsured market. Lenders will be required to “stress test” all uninsured mortgage loans at the greater of the Bank of Canada’s five-year (5) posted rate or 200 basis points (2 percentage points) higher than the negotiated contract rate. The rule is applicable where the buyer makes a down payment of at least 20 per cent of the home’s purchase price or higher. Home affordability will undoubtedly affect as a result of the changes. (the rate-comparison website) has calculated the

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