Banking regulator's proposals on mortgage rules lack stakeholder support
BNN Bloomberg
Mortgage strategist Robert McLister says the real estate industry is likely breathing a sigh of relief after Canada's banking regulator signalled it might not move ahead with some proposed tightening of its mortgage lending rules.
The Office of the Superintendent of Financial Institutions floated the proposals in January as part of its wide-ranging review of the B-20 mortgage underwriting rules.
It included potential additional conditions for a stress test, where would-be borrowers must prove they could continue to make mortgage payments at a higher interest rate.
It says stakeholders were generally not supportive of additional debt service measures and raised concerns about the disproportionate impact that new industry-wide measures could have on smaller lenders.
