# Capital Adequacy Requirements (CAR) Guideline 2026: Risk Weighting Real Estate Exposures

> Lenders must hold more capital against investment mortgage loans, which affects pricing.

Category: Investor
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/investor/capital-adequacy-requirements-car-guideline-2026-risk-weighting-real-estate-exposures

## Answer
| Risk Weighting | Property Type | Capital Requirement | Rate Impact |
|---|---|---|---|
| **20%** | Owner-occupied, insured | Low | Best rates |
| **35%** | Owner-occupied, uninsured | Medium | Standard rates |
| **100%** | Investment property | High | +0.25-0.50% premium |
| **100%** | Commercial (5+ units) | Highest | +0.50-1.00% premium |

Higher capital requirements mean lenders charge more for investment mortgages to maintain their return on equity.

## Related guide
- https://ratellow.com/guides/investment-property-financing-2026

## Sources
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- Disclosure requirements — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#3.1
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0