Income-Producing Residential Real Estate (IPRRE)

Income-Producing Residential Real Estate (IPRRE) is a classification under OSFI's Capital Adequacy Requirements (CAR) framework, in place since 2023 and emphasized in the November 14, 2025 clarification. A mortgage is IPRRE when repayment materially depends on cash flows generated by the property — most commonly rental income. IPRRE classification triggers higher capital requirements for the lender, which is usually passed through to the borrower as a 25-100 bps rate premium, higher minimum down payments (often 25-35% vs. 20% conventional), and tighter LTV caps. The November 2025 clarification confirms that the same borrower income cannot be used to classify multiple mortgages as GRRE — meaning second-and-beyond rental property mortgages typically classify as IPRRE for capital purposes, even when the borrower fully qualifies under B-20 underwriting. Critical distinction: IPRRE/GRRE is a CAPITAL classification rule for lenders, not an UNDERWRITING rule. B-20 qualifying rules are unchanged — lenders can still apply rental income to qualify borrowers for mortgages on multiple properties.