The regulator for all Canadian Banks in Canada, the Office of the Superintendent of Financial Institutions (OSFI) is introducing additional restrictive mortgage rules that will have a dramatic impact on the housing market and the ability of Canadians to qualify for a mortgage. The instrument being used is a STRESS test that will reduce the amount of money borrowers will be able to qualify for.
Quotes from OSFI:
“We clearly see the potential risks”
“Banking watchdog sees risks in Canada’s high debt and home prices and is doing something about it”