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For informational purposes only. Not financial, legal, or professional advice. Consult a licensed mortgage professional before making decisions. See full disclaimer

FAQ Library
Refinance•Verified 2026-02-18

How does OSFI's Guideline B-20 affect refinancing?

OSFI's Guideline B-20 establishes the benchmark for residential mortgage underwriting practices that federally regulated financial institutions (FRFIs) must adhere to.

Key Points

  • Lenders must follow careful lending practices when approving your mortgage.

  • Your ability to repay your mortgage is the most important factor for approval.

  • Lenders can't rely on mortgage insurance instead of carefully assessing your finances.

  • Lenders must share enough information about their mortgages so people can understand them.

  • There are specific rules for home equity lines of credit (HELOCs) to protect you and the lender.

Need a Deeper Breakdown?

Read the full research guide this FAQ was derived from for more context and strategy.

Technical Research Verification

Our systems synchronized 3 data points and regulatory frameworks to verify this technical brief.

Read the deeper guide · Refinance

2026 Canadian Mortgage Refinance Guide: Costs & Break-Even Math

Related Questions

How do GDS and TDS ratios affect my refinancing options?

GDS (Gross Debt Service) and TDS (Total Debt Service) ratios are critical affordability indicators that financial institutions use to determine your eligibility for refinancing.

What is the Loan-to-Value (LTV) ratio, and how does it impact my ability to refinance?

The Loan-to-Value (LTV) ratio plays a critical role in the refinancing process.

What is a 'straight switch,' and how does it impact refinancing at renewal?

A "straight switch" refers to the process of transferring an existing uninsured mortgage to a new institution when it's up for renewal, without increasing the remaining amortization period or the loan amount.

What Loan-to-Value (LTV) Ratio is Right for Me?

The Loan-to-Value (LTV) ratio is a key metric lenders use to gauge risk.

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B-20 outlines five core principles for underwriting:

  1. Governance: Establishes FRFI governance and the development of overarching business objectives, strategy, and oversight mechanisms.
  2. The borrower's identity: Emphasizes FRFI assessment of the borrower's identity, background, and demonstrated willingness to service their debt obligations on a timely basis.
  3. Borrower's Capacity: Stresses FRFI assessment of the borrower's capacity to service their debt obligations on a timely basis
  4. Collateral: Focuses on FRFI assessment of the underlying property value/collateral and management process.
  5. Effective credit and counterparty risk management practices: Requires FRFIs to have effective credit and counterparty risk management practices and procedures that support residential mortgage underwriting and loan asset portfolio management, including mortgage insurance where appropriate.