Canada’s Bank Regulator Says Smaller Down Payments Would Sacrifice Safety: OSFI

Canada’s Bank Regulator Says Smaller Down Payments Would Sacrifice Safety: OSFI

Canada’s new top dog at the bank regulator wants you to know they’re taking housing risks seriously. Office of the Superintendent of Financial Institutions (OSFI) Superintendent Peter Routledge discussed their housing priorities this week. In a speech to Vancouver CFAs, he said the financial system is safe but will get more regulations to keep it that way. He also shot down the idea of weakening the stress test or lowering down payments. Canadian Mortgage Market To Get Stronger Regulations The regulator doesn’t see much risk for the financial system but has a few concerns. In the speech, OSFI boasted of the smaller debt burdens households now face. They neglected to mention their own research shows a deterioration in loan quality. However, it appears they did keep the threat in mind, …
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