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Simplifying The Mortgage Rule Changes

Update #1




Insured Mortgage / High Ratio Mortgage = Less than 20% down payment

Non Insured Mortgage / Conventional Mortgage = 20% or greater down payment / equity

Bank of Canada Rate = the 5 year fixed posted rate (currently 4.89%)

Contract Rate = the actual rate offered by the lender to the consumer

Benchmark Rate/Qualifying Rate = Stress Test: Bank of Canada Rate OR Contract Rate +2%, whichever is greater

LTV (Loan To Value) = the size of a mortgage compared to the value of the property

OSFI has implemented 3 new mortgage rule changes starting January 1, 2018


The Red Door Mortgage Group - Mortgage Architects will continue to update you as new information arises on the regulatory changes announced by the Office of Superintendent of Financial Institutions (OSFI) on October 17th 2017.

We are starting with a series of 4 emails breaking down what you need to know.




Mortgage Broker/Owner
The Red Door Mortgage Group - Mortgage Architects

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