OSFI reopens consultations on Guideline B20, proposes qualifying floor of 5.25%.
The Office of the Superintendent of Financial Institutions (OSFI) is opening consultations today on a proposal to uncouple the uninsured mortgage stress test from the Bank of Canada’s posted 5 year rate, and instead set it at the greater of the mortgage contractual rate plus 200 basis points or 5.25%. The proposed change would effectively increase the qualifying floor from today’s 4.79% by 46 basis points.
The consultation invites interested stakeholders to province commentary by May 7th, 2021. OSFI will communicate its final amendments on May 24th, 2021, with an enforcement date of June 1st, 2021.
MPC will be responding to the consultation on behalf of our membership in the coming weeks and will keep you informed of our discussions with OSFI directly.