What does OSFI's Guideline B-20 say about mortgage lending?
Guideline B-20 outlines OSFI's expectations for responsible residential mortgage underwriting.
Key Points
These rules apply to all banks and lenders in Canada that offer mortgages.
Lenders must ensure you're both willing and able to repay your mortgage, and that the value of your home covers the loan.
When you apply for a mortgage, lenders will look at your overall financial situation to determine if you can comfortably afford your payments.
Your lender might require mortgage insurance, which can be provided by the government or private companies.
Lenders are responsible for checking that any mortgage insurance company they use is financially stable and reliable.
Primary sources
Primary sources cited by the Ratellow Research Team. Editorial standards · Correction policy
Related Questions
How does the stress test affect my 2026 renewal options?
Same-lender renewals and uninsured straight switches (OSFI, November 21, 2024) are exempt from the prescribed MQR. A refinance, an insured switch, or any increase in loan amount still requires the stress test — greater of 5.25% or contract + 2%.
What's the difference between insured and uninsured mortgage renewals?
Insured mortgages face stricter CMHC/Sagen constraints while uninsured mortgages enjoy flexible OSFI-only guidelines.
Should I consider switching lenders or negotiate with my current lender?
Your switching decision hinges on rate differential versus requalification risk, with break-even analysis determining optimal strategy.
When should I start my mortgage renewal process?
Start your renewal process 120-180 days before your current term expires to maximize your strategic options.