OSFI changing rules for mortgage insurers and update capital requirements
OTTAWA — Canada’s federal financial regulator is proposing new rules for mortgage insurance companies to better assess the risks of borrowers and deal with hot real estate markets.
The Office of the Superintendent of Financial Institutions released its draft advisory for public consultation on Friday.
The regulator has proposed a new standard approach to assessing risk that incorporates indicators including creditworthiness, remaining amortization and outstanding loan balance.
The new capital requirements also include a base amount that applies to all mortgages plus a supplemental amount that will apply when home prices are high relative to borrower incomes.