Here’s an excerpt from an article written by RBC Senior Economist Robert Hogue about the changes which took effect on January 1st, 2018 for those who purchase a home without insurance:
Starting on January 1, 2018, residential mortgage borrowers with a down payment of more than 20% will need to qualify at a significantly higher rate when they do business with a federally-regulated mortgage lender. This was officially announced today by the Office of the Superintendent of Financial Institution (OSFI) as part of final revisions to so-called Guideline B-20 on residential mortgage underwriting and procedures. The change isn’t a surprise, though, because a close version of it was included in a draft circulated by OSFI in July. And superintendent Jeremy Rudin recently expressed the view that such a move was necessary to further safeguard Canadian households and the financial system.
