Categories for Rate Regulation

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...

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...

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....

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,”...

The New Stress Test: Still Scratching Our Heads

Canada’s banking overlord, OSFI, is proposing a new 2-percentage-point (200-bps) “stress test” for people getting uninsured mortgages. Unlike the current stress test, which is based on one rate (the Bank of Canada...

This is One Beefy Rule Change

OK, how do I put this in a way that doesn’t sound over the top or like fear mongering? There was this mortgage rule proposal today, and it was a...

Another Nail in Competition’s Coffin

As previously announced, CMHC is jacking up default insurance premiums on Canadian borrowers. Effective today, anyone purchasing a home with less than 20% down will fork over up to 1.00%-point more in fees....

Risk Sharing & Your Mortgage

Everything’s a risk these days. You can’t even kiss your dog for risk of contracting some zoonotic disease. Even prime insured mortgages—where the odds of a borrower defaulting are less than your...

Biggest Mortgage Change Since the ’70s

The new posted-rate qualification rule kicked in today on high-ratio insured mortgages. It could shut out more buyers from the housing market than any single mortgage change since the late ’70s, when rates...