News from Canada's Mortgage Experts
Category: The Facts Your Bank Won't Tell You
Wednesday, June 6, 2012
Posted by: Mike Dias
At MonsterMortgage.ca we recently had a client call in with concerns revolving around certain proposed guidelines put forth by OSFI on mortgages in Canada.
OSFI, the Office of the Superintendent of Financial Institutions, recently proposed a number of changes around Canadian mortgages. This proposal has been put forward mainly to try and curb the amount of Canadian debt in hopes of avoiding any sort of sharp change in Canada's economic health.
Highlights of OSFI's proposed changes to the Canadian mortgage market include:
The requirement to re-qualify Canadian mortgage holders at the time of renewal.
Limiting HELOC (Home Equity Line of Credit) products to 65% of the value of your home.
MonsterMortgage.ca agent Mike Dias quickly touches upon some of these proposed changes and the potential impact of these changes on the Canadian mortgage market.
UPDATE: OSFI has confirmed that under their new guidelines, lenders will not be required to re-qualify borrowers at the time of renewal.