Categories for Rate Regulation

Mortgage Rules 2018: Credit Unions & The Stress Test

We’re one week into 2018, OSFI’s new mortgage stress test is live and the earth is still spinning on its axis. But that axis is now tilted…in credit unions’ favour. If you’re a mortgage shopper who’s been turned down by...

B-20 Backfire

Big-city home values were out of control. The real estate market needed de-risking. But the solution policy-makers gave us (the B-20 mortgage guideline) was imperfect, very imperfect. What’s About to Happen Effective January 1, 2018, the banking regulator (OSFI) will...

BoC Stands Pat. Prepare for B-20

Not much to see at today’s Bank of Canada meeting. It was another yawner as prime rate held at 3.20%. Among the few takeaways: The Bank stated: “While higher interest rates will likely be required over time, Governing Council will...

OSFI Rules to Cost Mortgage Renewers

Renewing a mortgage could soon get a lot more costly for 700,000+ Canadian families. And they’ll have OSFI to thank. The banking regulator’s new stress test will drive up debt ratio calculations for most conventional borrowers by 6 to 7...

A Case Where Banks Lose & Credit Unions Win

Canada’s new “B-20” mortgage stress test will be a tectonic shift for the roughly 1 in 6 borrowers it affects, starting January 1. It’s going to force higher-indebted creditworthy borrowers to either: reduce their loan amount, seek help qualifying (e.g.,...

The New Stress Test Could Affect Your Pre-Approval

If you’re among the roughly 1 in 6 conventional borrowers with the highest debt ratios, OSFI’s new mortgage stress test could keep you from: buying the home you want (which may be a good thing) renewing at better rates with another lender, or...

Stress Testing May Start Sooner

On Tuesday the government announced a January 1, 2018, implementation date for its new uninsured mortgage stress test. In that announcement it said something else that many glossed over: “Where possible, federally regulated financial institutions are expected to comply with the principles and expectations...

Key Mortgage Rule Clarifications from OSFI

Below are important clarifications on Canada’s new B-20 mortgage rules. Most of this stuff was not explicitly discussed in OSFI’s announcement yesterday. But if you’re getting a mortgage or HELOC, it’s need-to-know info. Amortization Limits:  One way to partially mitigate the new stress test...

OSFI’s Mortgage Stress Test: What Happens Next

We all knew it was coming, but now the reality sets in. The ruler of Canadian banking (OSFI) has solidified a rule change that’ll impact more mortgagors than any rule we’ve seen to date. Here’s a synopsis I wrote for the Globe and Mail if you need...

Private Rates Still Elevated Amid Tight Funding

Private (non-prime) lenders are getting tapped out across the country. Fisgard Asset Management Corporation, one of Canada’s largest mortgage investment corporations (MICs), is no exception. “It’s a dynamic time right now,” says Hali Noble, SVP at Fisgard. She explains that Home Capitals’ near-failure,...