# How do FRFIs determine my eligibility for a mortgage?

> FRFIs assess your eligibility based on five core principles, focusing on governance, borrower assessment, property value, and risk management.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/how-do-frfis-determine-my-eligibility-for-a-mortgage

## Answer
FRFIs assess your eligibility based on five core principles, focusing on governance, borrower assessment, property value, and risk management. They refer directly to the OSFI Guideline B-20 framework.

## Institutional highlights
- Your lender has a detailed plan for approving mortgages, based on how much risk they're willing to take.
- The lender checks your identity, history, and how likely you are to repay the mortgage.
- The lender carefully looks at whether you can comfortably afford your mortgage payments.
- The lender assesses the value of the property you want to buy and how well it will be maintained.
- The lender manages risks through things like mortgage insurance, to make sure your mortgage is secure.

## Related guide
- https://ratellow.com/guides/private-lending-mics-101

## Sources
- 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
- IV. Other guidance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#4.0
- Disclosure requirements — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#3.1