The industry was thrilled when the banking regulator dropped this as a requirement for uninsured mortgage borrowers switching to a new lender at renewal time
As far as mortgage policies go, none are reviled as much as the stress test, the hurdle that requires borrowers to prove they can handle their monthly mortgage payments at a rate two percentage points higher than the one they actually secure from their bank.
Unfortunately, this latest policy falls short of equalizing the mortgage marketplace for all borrowers. In theprovided to lenders, OSFI clarifies that this stress-test exemption only applies to borrowers who are switching from one federally regulated financial institution to another – mainly the six big banks.
These are also the lender types who tend to provide the most competitive interest rates on the market, and the most flexible mortgage products, so reducing renewing borrowers’ access to them means there’s less pressure on the big banks to compete with their interest-rate pricing.
Canada News Breaking News Video Canadian Breaking News Breaking News Globe And Mail Breaking News Globe And Mail Canada News Photos World News Local News National News Us News Foreign News Sports News Arts News Life News Lifestyle Canada Traffic Canada Weather Trudeau Government Federal Government Canada Sports Canada Sports News Politics Politics News Political News Political Opinion Environment Economy Technology Education Travel Canada Alberta Bc British Columbia Manitoba Ontario Quebec Nova Scotia Pei New Brunswick Newfoundland And Labrador Nunavut Northwest Territories Yukon Globe And Mail
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why companies aren’t democracies, and why that’s okayDual-class voting shares provide one class typically 10 to 20 more votes a share than another, which allows some minority shareholders to dominate a company
Read more »
Manulife CEO Roy Gori retires with more people asking why than ‘why not’Mr. Gori surprised the industry this week by announcing that he is retiring on May 8
Read more »
Why won't Ontario track the reasons why criminal charges are dropped or stayed?The Ontario Courthouse at 361 University Avenue in Toronto is photographed on Monday, May 2, 2022.
Read more »
Hilarious Cat Memes That Perfectly Capture Their Behavior And PersonalityCats have become the internet's (unofficial) mascots, and it's easy to understand why.
Read more »
Why I’m (still) not buying crypto, and never willFive reasons why you’re better off watching the rally from the sidelines
Read more »
Why I’m (still) not buying crypto, and never willFive reasons why you’re better off watching the rally from the sidelines
Read more »