The Office of the Superintendent of Financial Institutions (OSFI) has decided to maintain the existing mortgage stress test, impacting GTA homebuyers. This rule requires uninsured borrowers to qualify at rates 200+ basis points above their actual rate. While there was hope OSFI would replace it with a loan-to-income limit, both rules will remain in place, potentially making banks more selective about lending.
Industry expert Robert McLister notes that lenders’ funding costs have remained stable recently, leading to stagnant advertised mortgage rates. However, some big banks are offering discreet rate reductions to well-qualified borrowers who negotiate. This decision by OSFI means those with less-than-perfect credit may face higher borrowing costs. For a deeper dive into the implications, read the full article on Financial Post.
Source: Read the original article
