OSFI is considering replacing the traditional mortgage stress test with a portfolio-level approach that shifts responsibility from individual borrowers to banks, limiting high loan-to-income mortgages to 15% of quarterly originations.

• Current stress test requires uninsured borrowers to qualify at either 5.25% or contract rate plus 2%, but OSFI found it didn't prevent accumulation of high loan-to-income mortgages.
• New 450% loan-to-income cap implemented January 31, 2025, restricts banks to issuing no more than 15% of quarterly mortgages to heavily indebted borrowers.
• Pre-construction condo market facing crisis with properties being appraised 10-30% below original purchase prices, highlighting need for regulatory oversight.
• Specific industries facing increased lending restrictions, including steel and aluminum workers, suggesting broader economic concerns affecting mortgage availability.

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