Canada's financial regulator is close to releasing a new set of standards for Canada's mortgage insurers, one that the real estate industry is worried may chill the market. The Office of the Superintendent of Financial Institutions (OSFI) has been working on the guidelines since 2012, after it released a similar set of mortgage-lending standards for banks. The standard for banks, known in the industry as guideline B20, pushed lenders to be more cautious in areas such as credit checks on borrowers, document verification and appraisals. They also capped the amount that any individual can borrow on a home equity line of credit at 65 per cent of the home's value.
Regulator set to release new mortgage rules
- April 17, 2014