# What is a Loan-to-Income (LTI) limit, and how might it impact future mortgage lending?

> LTI limits are applied to a *bank's entire mortgage portfolio*, not individual borrowers, and aim to reduce risks from high household debt levels.

Category: Regulatory
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/regulatory/what-is-a-loan-to-income-lti-limit-and-how-might-it-impact-future-mortgage-lending

## Answer
LTI limits are applied to a *bank's entire mortgage portfolio*, not individual borrowers, and aim to reduce risks from high household debt levels.

## Institutional highlights
- Loan-to-income limits won't directly affect whether you get approved for a mortgage.
- Banks are expected to start using loan-to-income limits in early 2025.
- Regulators will monitor how well these new loan-to-income limits are working.
- Once the loan-to-income system is running smoothly, regulators will decide if the mortgage stress test is still needed for mortgages with a large down payment.

## Related guide
- https://ratellow.com/guides/stress-test-explained-2026

## 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
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- 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
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1