Canadian “Systemic Risk” Due To CLP Mortgages Is Bigger Than You Think

Canada’s problems with a little-known risky mortgage product are more significant than expected. OSFI, the country’s bank regulator, has targeted combined loan plans (CLPs) for the past few years. CLPs enable interest-only payments, allowing borrowers to carry mortgage debt perpetually. The regulator called these a “systemic risk” that inflates home prices, so it’s clearly a […]

This Week’s Top Stories: Canada’s Bank Regulator Wants Tighter Rules As Real Estate Prices Crash

Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada’s Bank Regulator Wants Tighter Rules To Address Real Estate Risks Canada’s bank regulator is looking to protect the financial system from mortgage risks. Last week, OSFI began a public consultation on new mortgage measures. They include limits on loan-to-income ratios, new […]