Quebec credit unions toughen mortgage rules
March 29, 2018
Quebec credit unions are apparently preparing mortgage regulations that will mirror the stress test being applied to federally regulated banks.
Quebec’s securities watchdog, l’Autorité des marchés financiers (AMF), plans to harmonize the province’s guidelines for credit union mortgage lending with the new Office of the Superintendent of Financial Institutions (OFSI) B-20 mortgage rules.
Currently, as provincially regulated lenders, credits are exempt from the B-20 mortgage rules (the so-called stress test), though they have the option of following the same regulations.
Some credit unions, such as Mouvement Desjardins, have already voluntarily been applying OSFI’s new rules to all mortgage applications.
According to RateSpy, some credit unions are not requiring a stress test on new mortgage applications but are charging higher mortgage than what is available at the major banks.