# What are Loan-to-Income (LTI) limits and how will they affect institutional mortgage portfolios?

> OSFI is introducing Loan-to-Income (LTI) limits to reduce risks from high household debt in institutional mortgage portfolios .

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/what-are-loan-to-income-lti-limits-and-how-will-they-affect-institutional-mortgage-portfolios

## Answer
OSFI is introducing Loan-to-Income (LTI) limits to reduce risks from high household debt in institutional mortgage portfolios . These limits, which take effect in fiscal Q1 2025, apply to portfolios, not individual borrowers.

## Institutional highlights
- New rules limit how much risk lenders can take on their overall mortgage business.
- These changes won't directly affect your ability to get a mortgage or renew your existing mortgage.
- Lenders are expected to follow these new rules starting in early 2025.
- The government will keep an eye on how well these limits are working.
- The government may rethink the mortgage stress test after these new rules are in place, as they both aim to ensure responsible lending.

## Related guide
- https://ratellow.com/guides/2024-2026-canadian-mortgage-reforms-guide

## Sources
- OSFI exempts uninsured mortgage straight switches from the prescribed MQR and implements portfolio LTI limits — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/osfi-exempts-uninsured-mortgage-straight-switches-prescribed-mqr-implements-portfolio-lti-limits
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1
- 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