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Mortgage stress test expansion aimed at reducing sky-high household debt

Friday, November 10, 2017 @ 10:42 AM | By Anar Dewshi

The Office of the Superintendent of Financial Institutions (OFSI), which regulates banks and mortgage insurance companies, released further mortgage rules in a guideline titled Residential Mortgage Underwriting Practices and Procedures which will come into effect on Jan. 1, 2018. The purpose of this guideline is to ensure that federally regulated lenders adopt a stringent and rigorous approach to mortgage underwriting and to their internal risk protocols.

The most important rule change is the expansion of the mortgage stress to all potential homebuyers. Previously, the stress test...