Mortgage regulations could tighten further
January 23, 2023
As Canada’s housing sales plunge and prices in different markets plateau or tumble, the Office of the Superintendent of Financial Institutions (OSFI) is dreaming up new ways to make it even harder to afford a home.
OSFI announced proposals January 12, 2023, in response to what it says are building risks in Canada’s residential mortgage market.
“Unprecedented house price increases have been accompanied by record levels of household indebtedness, of which residential mortgages account for a large share,” OSFI said in its consultation document. “Federally regulated financial institution lenders, which hold approximately 80 per cent of all residential mortgages in Canada, are exposed to heightened risks from this indebtedness.”
OSFI’s three proposals include:
None of the proposed changes will be finalized until after OSFI’s consultation period which is open until April 14, 2023.