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.”
