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OSFI Guideline B-20: Fortifying Residential Mortgage Underwriting

Q: OSFI Guideline B-20: Fortifying Residential Mortgage Underwriting

| Rule | Impact on Investment Properties | |---|---| | **Stress test qualifying rate is the greater of contract rate + 2% or 5.25%, e.g. for a 4.29% contract rate, qualifying rate is 6.25%** | Reduces qualifying power by ~20% vs contract rate | | **20% minimum down payment required for investment properties; CMHC insurance is not available for properties over $1,000,000 or investment properties generally** | No CMHC insurance available for most rental properties | | **Max 80% LTV** | Limits refinancing options for equity extraction | | **GDS ≤ 39% / TDS ≤ 44%** | Rental income offset (50-80%) helps, but may not be enough | | **LTI portfolio limits** | Some lenders restricting investor exposure | Investment properties face stricter scrutiny than primary residences under B-20.

OSFI's B-20 guideline sets the foundation for investment property underwriting.

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OSFI Guideline B-20: Fortifying Residential Mortgage Underwriting

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Technical Research Verification

2026 Canadian Investment Property Mortgage Rules: Down Payments, LTV, and Rental Income Qualification

Related Questions

What are the critical mortgage underwriting principles for FRFIs?

How does B-20 affect Home Equity Lines of Credit (HELOCs)?

What documentation is necessary for a mortgage application?

QUESTION: How do lenders assess rental income?

OSFI Guideline B-20: Fortifying Residential Mortgage Underwriting

Need a Deeper Breakdown?

Technical Research Verification

2026 Canadian Investment Property Mortgage Rules: Down Payments, LTV, and Rental Income Qualification

Related Questions

What are the critical mortgage underwriting principles for FRFIs?

How does B-20 affect Home Equity Lines of Credit (HELOCs)?

What documentation is necessary for a mortgage application?

QUESTION: How do lenders assess rental income?

Rule	Impact on Investment Properties
Stress test qualifying rate is the greater of contract rate + 2% or 5.25%, e.g. for a 4.29% contract rate, qualifying rate is 6.25%	Reduces qualifying power by ~20% vs contract rate
20% minimum down payment required for investment properties; CMHC insurance is not available for properties over $1,000,000 or investment properties generally	No CMHC insurance available for most rental properties
Max 80% LTV	Limits refinancing options for equity extraction
GDS ≤ 39% / TDS ≤ 44%	Rental income offset (50-80%) helps, but may not be enough
LTI portfolio limits	Some lenders restricting investor exposure