Guidelines requiring financial test for uninsured buyers go into effect Jan 1, 2018
New guidelines that will soon place restrictions on uninsured borrowers looking to secure a mortgage have — as one Ottawa realtor puts it — kicked the pursuit of a home into "overdrive."
Earlier this month, the Office of the Superintendent of Financial Institutions (OSFI) released guidelines for the mortgage industry that will take effect on Jan. 1, 2018.One of the major new rules is a requirement to subject uninsured borrowers to a "stress test." At the moment, anyone who puts down more than 20 per cent of the value of a home doesn't have to pay for mortgage insurance, and is considered an uninsured borrower.Only insured borrowers — those who put down less than
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