New Scrutiny for Mortgage Borrowers: B-20 and B-21 Update + MORE Nov 7th

On Thursday, the Office of the Superintendent of Financial Institutions (OSFI) announced its complete B-21 guidelines for underwriting insured mortgages. But it didn’t stop there. The banking regulator also tweaked some of its B-20 guidelines, rules that shook the mortgage market when they were initially released in summer 2012. This time around, OSFI’s actions will have […]

Following our October 27 story, a few readers questioned how low Canadian bond yields (and hence, fixed mortgage rates) can really go. Despite that story’s curt title “The Bottom is Zero,” the bottom in bond yields is actually (theoretically) below zero. Negative bond rates have numerous precedents. Government yields from countries like Japan, Switzerland, Germany, […]

It has been a busy week for money rule makers – and recent changes could directly affect your wallet. The government has given the word on two controversial issues close to Canadian consumers – the introduction of the long-promised income splitting tax credit, and a reduction of credit card processing fees for your favourite retailers. These measures seem like they’ll save you money – but how much will consumers really benefit?
ant to know more? Check out our full coverage below.
In Credit Cards: Interchange Fees – What You Need to Know
Credit card giants Visa and MasterCard announced they will voluntarily reduce the credit card interchange fees paid by retailers to about half.
How will this benefit you as a consumer – and what should you keep a close eye out for?
Read Penelope’s Blog | Interchange Fees – What You Need to Know
In Mortgages: How to Finance a U.S. Home Purchase
Want to join the ranks of snowbirds who fly south of the border when Canadian temperatures drop? American real estate can be a great deal – but there are mortgage challenges facing foreign buyers…

The pressure is on – mortgage hopefuls find themselves under increased scrutiny as new rules push lenders and insurers to look deeper into their income requirements and assets.
The Office of the Superintendent of Financial Institutions (OSFI) announced on November 6 the finalized iteration of its proposed B-21 regulations, a guideline to minimize the risk taken on by mortgage insurers.
Also read: How Will OSFI B-21 Impact You?>
The final draft of the regulations, which have been open for public review since April, introduce some stricter standards for mortgage lenders and their assessment of borrowers. To compliment these new regulations, OSFI has also tweaked parts of its existing B-20 policy, which are in place to minimize the amount of high-risk debt taken on by mortgage borrowers.
Also read: How Will New Mortgage Amortization and Refinance Rules Affect Me?>
Those regulations, which were first introduced in 2012, are notorious for cutting the minimum amortization for insured mortgages to 25 years, limiting HELOC amounts to 60 per cent, and enforcing new debt-ratio requirements for mortgage applicants…

Justin and his wife Danielle want to create a $200,000 endowment fund for civic-minded students (Photograph by Shannon Mendes)
The current situation
Justin Langlois, 30, and his wife, Danielle Sabelli, 29, recently moved to Vancouver. He’s a professor at a local university, while Danielle, who is currently articling at a law firm, plans to open her own practice when she finishes in a year’s time. Together, the couple earns about $100,000 annually but expects to increase that to $130,000 in a couple of years. Their only debts are a $297,000 condo mortgage and a $5,000 RRSP loan—obligations they’ll have no problem paying off as they don’t plan on having any children. “Post-secondary school was a good investment for us,” says Justin. “We want to support other students who want a good education but don’t have the money.”
That’s why the couple has a unique goal. They’d like to set up an endowment fund that would give out scholarships annually to a few civic-minded students…