Officials expected to finalize lending guidelines by end of June, early July
The Office of the Superintendent of Financial Institutions sent ripples through the industry March 19th, releasing "draft recommendations" for all federally regulated banks to follow.
On March 19th, The Office of the Superintendent of Financial Institutions (OSFI) released a series of proposed changes to the guidelines surrounding mortgages and lines of credit. The outcome is expected to be finalized late June or early July, giving industry experts much to discuss.
Some of the alterations, such as making it necessary for clients to re-qualify when renewing a mortgage, have been retracted. This is welcome news for borrowers and lenders alike.
The proposed guidelines are reported to be a method for OSFI to moderate debt growth without increasing mortgage rates. The Bank of Canada announced on June 5th that the prime rate would remain unchanged, and it is speculated this will be the case well into 2013.
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