# What are the key assessment criteria FRFIs consider under B-20?

> FRFIs evaluate multiple factors to determine a borrower's creditworthiness and the property's value, with a major focus on the borrower's ability to repay the debt.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/what-are-the-key-assessment-criteria-frfis-consider-under-b-20

## Answer
FRFIs evaluate multiple factors to determine a borrower's creditworthiness and the property's value, with a major focus on the borrower's ability to repay the debt. Consider a first-time home buyer who initially used a private mortgage due to a thin credit file. When they seek to switch to a FRFI, the bank assesses all criteria rigorously. Here's a brief overview:

## Institutional highlights
- We'll check who you are and your history of paying debts.
- We'll carefully look at your ability to keep up with your mortgage payments.
- We'll assess the value of your home to make sure it's enough to cover the mortgage.
- There's a limit to how long you can take to pay off your mortgage.

## Related guide
- https://ratellow.com/guides/private-mortgage-exit-strategy

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