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How new mortgage stress-test rules will affect the market

Tuesday, April 10, 2018 @ 8:40 AM | By Matthias Duensing

In October 2017, the Office of the Superintendent of Financial Institutions (OSFI) introduced new mortgage lending rules that took effect on Jan. 1.

Previously, financial institutions were able to exempt purchasers with a down payment of at least 20 per cent of the purchase price of their new home from needing mortgage insurance and from being subject to the affordability stress test.

Now, regardless of the amount of the down payment, financial institutions are required to evaluate mortgage applications on the basis of the new stress...