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Final Guidelines for Mortgages Released

Canada’s banking regulator has published the final changes to its guidelines for residential mortgage underwriting, including a financial stress test for buyers who don’t need mortgage insurance.

The Office of the Superintendent of Financial Institutions said Tuesday the changes will come into force by Jan. 1, 2018.

Even homebuyers who don’t require mortgage insurance because they have a down payment of 20 per cent or more will have to prove they can continue to make payments if interest rates rise.

Other changes include restrictions on co-lending, or bundled mortgages, aimed at ensuring financial institutions do not circumvent rules that limit how much they can lend.

The final guidelines are generally similar to what OSFI had proposed in July, when the regulator put out a draft for public consultation.
The proposed changes, however, have been criticized for including potentially increasing costs and limiting access to mortgages for some home buyers.

“These revisions to Guideline B-20 reinforce a strong and prudent regulatory regime for residential mortgage underwriting in Canada,” said Superintendent Jeremy Rudin in a statement on Tuesday.

The Canadian Press

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ENERGY INCENTIVE PROGRAM

Ontario’s Home Energy Conservation Incentive Rebate Program

Kitchener Utilities customers can now apply for Ontario’s Home Energy Conservation Incentive Rebate program. Customers are eligible for a rebate up to $5,000 and must select a certified energy advisor to get started. The incentive is part of the province’s $100 million contribution to the Green Investment Fund, an initiative designed to strengthen the economy and fight climate change. Learn more at www.ohecip.ca