The federal government is considering implementing additional mortgage tightening rules that could have an important impact on uninsured mortgage applicants.
We believe all Canadians should have access to housing that meets their needs and that they can afford. However, the Office of the Superintendent of Financial Institutions (OSFI) is proposing a stress test for uninsured mortgages. The proposal would require lower-risk borrowers to be approved at two percent above the rate offered to them by their lender. This measure would shut many consumers out of the market, drive them into less suitable housing or entice them to visit sub-prime lenders that are not federally regulated. The reality is that homeownership is slipping out of reach for many first-time homebuyers in housing markets with a shortage of affordably priced homes.
Provided by CREA