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New Set of Guidelines for Mortgage Issuers Released

Starfish The Gray Team Ucluelet Real Estate

Financial regulator moves to guard against housing bubble

Tara Perkins, The Globe and Mail

Canada's financial watchdog has released a long awaited set of guidelines for the country's three mortgage insurers.

The guidelines, which have been in the works since 2012, remain a proposal. The Office of the Superintendent of Financial Institutions will now hear comments and suggestions from mortgage insurance companies and others until May 23 before releasing a final set of rules.

Industry players have been watching to see whether any of the proposed guidelines might impact the housing market by making it more difficult for consumers to obtain mortgage insurance. Mortgage insurance is mandatory in Canada for homebuyers who have a down-payment of less than 20 per cent. It compensates the bank if the borrower defaults on their mortgage.


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