# What are the Loan-to-Income (LTI) limits, and how do they impact lenders?

> OSFI is introducing Loan-to-Income (LTI) limits on the uninsured mortgage portfolios of federally regulated financial institutions (FRFIs).

Category: Regulatory
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/regulatory/what-are-the-loan-to-income-lti-limits-and-how-do-they-impact-lenders

## Answer
OSFI is introducing Loan-to-Income (LTI) limits on the uninsured mortgage portfolios of federally regulated financial institutions (FRFIs). This aims to reduce the risks associated with high household debt. The limits apply to the portfolio as a whole, not individual mortgages. Exceeding these limits could mean a bank has to hold more capital, impacting its lending capacity. Here's a simplified view:

## Institutional highlights
- These rules apply to your lender's overall lending, not just your individual mortgage application.
- Lenders are expected to follow these new rules starting in early 2025.
- The government will be watching lenders to make sure they follow these loan rules.
- The government may change the mortgage stress test rules after these new loan limits are fully in place.

## Related guide
- https://ratellow.com/guides/osfi-stress-test-explained

## 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
- Updates After Approval — https://www.sagen.ca/ups/underwriting-documentation/#updates-after-approval
- Mortgage Insurance Prepay and Re-Advance Policy — https://www.sagen.ca/ups/underwriting-documentation/#mortgage-insurance-prepay-and-re-advance-policy-638f55989d20b
- Model validation and stress testing — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.3