OSFI has released their final draft guidelines on mortgage underwriting principles. Expected to be in full compliance by the end of the 2012/13 fiscal year, the guidelines are targeting the borrowing capacity of mortgage seekers, establishing sound appraisal processes as well as effective credit and risk management measures.
CIBC is the latest Big 5 lender to pull out of the mortgage broker business, announcing today that they are shutting down FirstLine Mortgages, once the largest mortgage brokerage in Canada. It’s a move that reflects tough times ahead for the broker channel sector.
Great news for homeowners! OSFI has revised proposed changes made in March to mortgage renewal and HELOC guidelines. The changes, which would have subjected home owners to a new credit risk check upon renewal, as well as imposed an amortization rate on home equity line of credit, were revised in light of criticism that they would cause more harm than good to the Canadian housing market.