As many of you may remember, this past October the Office of the Superintendent of Financial Institutions (OSFI) issued a revision to Guideline B-20 . The changes will go into effect on January 1, 2018 but lenders are expecting to roll this rules out to their consumers between December 7th – 15th, and will require conventional mortgage applicants to qualify at the Bank of Canada’s five-year benchmark rate or the customer’s mortgage interest rate +2%, whichever is greater. OSFI is implementing these changes for all federally regulated financial institutions. What this means is that certain clients looking to purchase a home or refinance their current mortgage could…
-
OSFI MORTGAGE CHANGES ARE COMING
Categories: Dominion Lending Centres , Mortgage , OSFI
-
OSFI Changes - New Regulations by "The Regulator"
Categories: Jencor , OSFI , The Regulator
The Government of Canada has changed the bank guidelines for qualifying a conventional mortgage. As of Jan 01 / 18 borrowers with 20% or more down payment or 20% or more equity when refinancing will qualify based upon the published five-year benchmark rate, currently at 4.89% or their contract rate plus 2% whichever is greater. For most people, this will mean about a 25% smaller mortgage. Also, the government wants regulated lenders to have more scrutiny around loan to value ratios. Wonder what that means?? Mr. Rudin, the OSFI regulator championing these changes will someday be remembered as either, 1) That really smart regulator…
-
Stricter OSFI rules on mortgage lending 'will do more harm than good': Fraser Institute
Categories: Garry Marr , Lending , Mortgage , OSFI , The Financial post
Fraser Institute doesn't believe the changes are necessary and says another key result could be a less competitive mortgage industry Add another group to the growing list of organizations trying to convince the federal banking regulator to back down from its plan to tighten the reins on consumers borrowing with low ratio loans. The Fraser Institute said Wednesday the changes to consumers with 20 per cent down could make it harder for them to access mortgages, especially in higher-priced markets. Those buyers could turn to less regulated finance companies or perhaps turn to shorter, more volatile variable loans to meet qualification criteria. “The…