{"id":202100,"date":"2017-10-04T10:18:21","date_gmt":"2017-10-04T13:18:21","guid":{"rendered":"https:\/\/baldominaudo.com\/?p=19896"},"modified":"2017-10-04T10:18:21","modified_gmt":"2017-10-04T13:18:21","slug":"osfi-changes-may-signal-expectations-of-2-increase-in-mortgage-interest-rates","status":"publish","type":"post","link":"https:\/\/metroactive.org\/wordpress\/2017\/10\/04\/osfi-changes-may-signal-expectations-of-2-increase-in-mortgage-interest-rates\/","title":{"rendered":"OSFI Changes May Signal Expectations of 2% Increase in Mortgage Interest Rates"},"content":{"rendered":"

\"\"<\/a>This month the Office of Superintendent of Financial Institutions for Canada is finalizing changes in legislation that will include requiring those that purchase a home with a minimum down payment of at least 20%, not needing mortgage insurance, to prove they could still afford their mortgage payments if interest rates were 200 basis points (two percentage points) higher than the rate they negotiate.<\/p>\n

Jeremy Rudin, the Superintendent of Financial Institutions, told reporters. \u201cBut we do know this: Housing prices are still near their all-time highs, and mortgage rates are still near their all-time lows. And while sound underwriting is always important, it\u2019s never been more important than it is now.\u201d<\/p>\n

Though OSFI, nor the banks have stated that interested rates are headed 2% higher, the fact that they are stress-testing for this to happen, tells me that they are planning for it to happen.<\/p>\n

Meanwhile, the Bank of Canada has already announced that they are expecting to increase interest rates again later this month.<\/p>\n

Banks have already tightened their lending policies and I\u2019m getting reports of strong applicants having their mortgage applications turned down by the banks.<\/p>\n

Globe and Mail article on OSFI announcement<\/a><\/p>\n

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Originally published by Baldo Minaudo on BaldoMinaudo.com, Baldo Minaudo, M.B.A. is a Real Estate Broker located out of Toronto serving local and international clients. He may be reached through is office 416-698-2090 or through his website.<\/p>\n","protected":false},"excerpt":{"rendered":"

This month the Office of Superintendent of Financial Institutions for Canada is finalizing changes in legislation that will include requiring those that purchase a home with a minimum down payment of at least 20%, not needing mortgage insurance, to prove they could still afford their mortgage payments if interest rates…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-202100","post","type-post","status-publish","format-standard","hentry"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t