If you want to be heard on OSFI’s new lending restrictions, tomorrow is your last chance to submit feedback.
This could very well be the most commented-on OSFI proposal in years.
Here’s what you need to know:
What changes?
See: OSFI Draft Underwriting Guidelines
Where can I comment?
Click: here
How might OSFI’s changes impact me?
See: “More Stringent Mortgage Qualifications” (our take)
What are others recommending?
See: CAAMP’s Response.
Below is a quick summary of recommendations from the Canadian Association of Accredited Mortgage Professionals (read the above link for context):
- “CAAMP strongly recommends that…mortgages continue to be renewed at maturity without requalification” where the borrower has paid as agreed. If not, it “would result in a number of properties hitting the market at the same time thereby driving down prices.”
- “CAAMP supports the elimination of “cash back” products in lieu of the five percent down payment. Borrowers should have ‘skin in the game’.”
- “CAAMP recommends non-conforming or alternative lenders be permitted to (continue lending) up to 80% LTV” to properly qualified borrowers.
- “CAAMP recommends that flexibility be allowed for those individuals with sound credit and verified income, to go beyond the proposed 65% LTV threshold for HELOCs…“This would support options for both retirement planning and small business investment. If the funds are used for the purpose of purchasing a home then CAAMP recommends they should be structured like mortgages and be amortized…If the funds are being used for business purposes, CAAMP recommends that there not be an amortization requirement.”
Thank you for the reminder Rob. I believe all of us should send in comments. If we don’t, then we really can’t complain after the fact, can we?
Has anyone here read CAAMPS response to the guidelines? Talk about weak. Data would have been nice to support the positions they put forward…….
Seriously though…this is a waste of your time to write a comment. It’s the same as Munis holding pulic sessions…they have their minds made up already.
Thanks for the defeatist and useless comment.
I have a feeling you don’t want people to comment so as to protect your own agenda.
I would encourage everyone to send constructive criticism. OSFI will listen.
Issuer should take the first 20% hit on default. Like deductible in any insurance.
Borrowers should always have skin in the game until they pay off the loan so they should be re-qualified to check their house is under water or not …….