愛污传媒

Skip to main content

Bank regulator consulting on proposed mortgage guideline changes

Aerial views of housing in Calgary on June, 22, 2013. THE CANADIAN PRESS/Jonathan Hayward Aerial views of housing in Calgary on June, 22, 2013. THE CANADIAN PRESS/Jonathan Hayward
Share
OTTAWA -

Canada's banking regulator has launched consultations on proposed changes to mortgage guidelines to address risks related to borrowers with growing balances.

The Office of the Superintendent of Financial Institutions wants to address risks related to rising balances, which can happen in cases such as when fixed payments on variable rate mortgages aren't enough to cover the interest portion.

The proposal comes after a rapid rise in interest rates from 0.25 per cent early last year to 4.75 per cent as of last month that have put strain on borrowers and raised concerns over risks to the mortgage market.

The regulator's proposal would formalize that mortgages with a growing balance and a loan-to-value ratio above 65 per cent do not meet its expectations related to B-20 mortgage guidelines.

For the mortgage insurer capital adequacy test, it would allow some mortgages to grow to 105 per cent of the original loan before a lender takes remedial action, up from the current 100 per cent cap.

The launch of consultations, which are set to run until Sept. 1, come a day ahead of the Bank of Canada's latest rate decision that forecasters expect to see another quarter of a percentage point rise to five per cent.

This report by The Canadian Press was first published July 11, 2023.

CTVNews.ca Top Stories

The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.

A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.

A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.

He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.

Canada's discount airline is suspending operations to and from Saskatoon.

A new report suggests that Canadians' exposure to a radioactive gas is increasing, putting millions of people at a higher risk of developing lung cancer.

Local Spotlight

He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.

A meteor lit up our region's sky last night 鈥 with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.

Residents of Ottawa's Rideauview neighbourhood say an aggressive wild turkey has become a problem.

A man who lost his life while trying to rescue people from floodwaters, and a 13-year-old boy who saved his family from a dog attack, are among the Nova Scotians who received a medal for bravery Tuesday.

A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.

A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.

Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.

Looking for a scare with good intentions this Halloween season? The ghosts and ghouls of Eganville, Ont. invite families to tour the Haunted Walk at Lekbor Manor.

The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that 鈥 and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.

Stay Connected