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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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.
<ul>
<li>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.</li>
<li>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.</li>
<li>Pre-construction condo market facing crisis with properties being appraised 10-30% below original purchase prices, highlighting need for regulatory oversight.</li>
<li>Specific industries facing increased lending restrictions, including steel and aluminum workers, suggesting broader economic concerns affecting mortgage availability.</li>
</ul>
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<a href="https://www.eventbrite.ca/e/navigating-capital-financing-your-real-estate-investments-tickets-1064569809959?aff=Podcast">Get Your Navigating Capital Event Tickets</a>
<a href="https://www.bmogam.com/ca-en/products/exchange-traded-funds/?ecid=dw-F25GAMOrganicGAM1-BMUM14">Exchange-Traded Funds (ETFs) | BMO Global Asset Management</a>
<a href="valery.ca">Buy &amp; sell real estate with Ai at Valery.ca&nbsp;</a>
<a href="https://www.owlmortgage.ca/">Get a mortgage pre-approval with Owl Mortgage</a>

The Podcast For Canadian Real Estate Investors.

The podcast features in depth discussion around investing in real estate, ongoing news in the Canadian real estate market, how to structure deals and grow your portfolio.
Show hosts Daniel Foch and Nick Hill bring experience, fresh takes, well-researched information and entertainment to a real estate investing podcast for Canadians.

The Podcast For Canadian Real Estate Investors.
The podcast features in depth discussion around investing in real estate, ongoing news in the Canadian real estate market, how to structure deals and grow your portfolio. Show hosts Daniel Foch and Nick Hill bring experience, fresh takes, well-researched information and entertainment to a real estate investing podcast for Canadians.

The Canadian Real Estate Investor

The Podcast For Canadian Real Estate Investors.

The podcast features in depth discussion around investing in real estate, ongoing news in the Canadian real estate market, how to structure deals and grow your portfolio.

Show hosts Daniel Foche and Nick Hill bring experience, fresh takes, well-researched information and entertainment to a real estate investing podcast for Canadians.

The Podcast For Canadian Real Estate Investors.
The podcast features in depth discussion around investing in real estate, ongoing news in the Canadian real estate market, how to structure deals and grow your portfolio.
Show hosts Daniel Foche and Nick Hill bring experience, fresh takes, well-researched information and entertainment to a real estate investing podcast for Canadians.

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