OSFI Archives - Better Dwelling

Canadian “Systemic Risk” Due To CLP Mortgages Is Bigger Than You Think

Stephen Punwasi — Tue, 12 Dec 2023 19:25:04 +0000

Canada’s problems with a little-known risky mortgage product are more significant than expected. OSFI, the country’s bank regulator, has targeted combined loan plans (CLPs) for the past few years. CLPs enable interest-only payments, allowing borrowers to carry mortgage debt perpetually. The regulator called these a “systemic risk” that inflates home prices, so it’s clearly a […]

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Canadian Bank Had “Deficient” Anti-Money Laundering Controls: Class Action

Stephen Punwasi — Wed, 31 May 2023 20:09:06 +0000

Canada is known for three things these days—maple syrup, hockey, and money laundering. Earlier this month, poor attention to the last one may have derailed TD’s $13.5 billion acquisition of US bank First Horizon. Now Robbins LLP, a firm specializing in shareholder rights, has made it the center of a new class action suit. The […]

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Canadian Real Estate Prices Propped Up By Longer Repayment: Bank Regulator

Stephen Punwasi — Tue, 16 May 2023 18:21:43 +0000

A few weeks ago, we revealed that sky-high Canadian real estate prices are supported by extended amortizations. It turns out someone else agrees—Canada’s bank regulator, the Office of the Superintendent of Financial Institutions (OSFI). In a letter to the House of Commons Standing Committee on Finance, OSFI explains that removing the ability to extend amortization […]

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Canadian Seniors Are Racking Up Reverse Mortgage Debt At A Rapid Rate

Daniel Wong — Mon, 06 Feb 2023 18:16:17 +0000

Canadian homeowners aren’t shy about cashing in on their windfall, especially seniors. Regulatory filings with OSFI, Canada’s bank regulator, show reverse mortgage debt surged in November. Despite rising interest rates, seniors haven’t slowed down on the rush to cash out some of their home equity windfall. In fact, reverse mortgage debt has recently surged in […]

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This Week’s Top Stories: Canada’s Bank Regulator Wants Tighter Rules As Real Estate Prices Crash

Better Dwelling — Sun, 15 Jan 2023 15:34:09 +0000

Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada’s Bank Regulator Wants Tighter Rules To Address Real Estate Risks Canada’s bank regulator is looking to protect the financial system from mortgage risks. Last week, OSFI began a public consultation on new mortgage measures. They include limits on loan-to-income ratios, new […]

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Canada’s Bank Regulator Wants Tighter Rules To Address Real Estate Risks

Stephen Punwasi — Fri, 13 Jan 2023 18:36:41 +0000

Canadian homebuyers might face stronger regulations around mortgage borrowing soon. Office of the Superintendent of Financial Institutions (OSFI), Canada’s bank regulator, is soliciting feedback on a series of new rules to reduce leverage and mitigate risk. Now that risk tools like the stress test have proved why they’re important, they’re seeking to address any gaps […]

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Nearly 1 in 3 Canadian Mortgages Are Still Going To Overleveraged Borrowers

Daniel Wong — Fri, 13 Jan 2023 02:27:22 +0000

Canada’s real estate market got a big boost from overleveraged borrowers, according to its bank regulator. OSFI data shows the share of mortgage borrowers that are overleveraged remains high. Overleveraged borrowers, those with a loan to income ratio of 450% or higher, have begun to taper with higher rates, but still represented 1 in 3 […]

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Canada’s Bank Regulator Just Told Banks To Put Away More Cash For A Risk Event

Daniel Wong — Fri, 09 Dec 2022 18:17:03 +0000

Canada’s bank regulator is quietly asking the country’s largest banks to put aside a lot more rainy day cash. OSFI, Canada’s bank regulator, increased the domestic stability buffer (DSB) on Thursday. The move would see its Big Six financial institutions set aside significantly more capital for a risk-related event. The move will lower the need […]

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Canadian HELOC Debt Hits A 9-Year High For Growth, An Abrupt Surge In Borrowing

Daniel Wong — Tue, 26 Jul 2022 16:33:18 +0000

Canadian HELOC debt is starting to surge as homeowners tap their home equity at a time when credit is tightening and home prices are falling.

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Canadians Borrowed $22 Billion More In Home Equity, A New Record For Growth

Daniel Wong — Sat, 25 Jun 2022 18:58:04 +0000

Canadian real estate values are soaring, but owners don’t want to sell to tap that windfall. Instead they’re taking out loans against the equity — big loans. Regulatory filings reveal a surge in home equity line of credit (HELOC) debt in April 2022. However, HELOC debt is just a part of the total for home […]

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