Additional Mortgage Changes on the Horizon

The Office of the Superintendent of Financial Institutions (OSFI) is proposing mortgage rule changes for borrowers with equity or down payments greater than 20%. 

The proposal would require banks and other mortgage institutions to stress test a borrower approximately 200 percentage points above the borrower's contract rate

Industry experts, say the extension of the 'stress test' to non-insured mortgages would have a far greater impact. It would shut many borrowers out of the market, drive them into less suitable housing, or send them into the arms of credit unions or sub-prime lenders that are not federally regulated.