Canada’s real estate industry is asking bank regulators to loosen lending standards. OSFI, the bank regulator, is currently holding feedback on B-20 Guideline revisions. The Guideline, better known as the “stress test,” ensures borrowers can pay their mortgage after a modest rate hike. The Toronto Regional Real Estate Board (TRREB) wants some tweaks, arguing it’s […]
Canada is seeing a rise in highly indebted, and over-leveraged mortgage borrowers again. Office of the Superintendent of Financial Institutions (OSFI) data shows a rise in relatively large loans, when compared to borrower income, in Q4 2019. The increase has been rising over the past two years, and now represents the largest segment in the […]
After years of doing mostly nothing, Canadian regulators are springing into action. The Office of the Superintendent of Financial Institutions (OSFI), after successfully rolling out B-20 Guidelines, are turning their focus to equity lending. Mortgages issued this way allow lenders to gloss over income, and rely mostly on equity in the home. 1 in 5 […]
Stress testing Canadian real estate buyers is preventing highly indebted borrowers from getting in over their heads. That’s a good thing.