In a significant move to address financial stability and borrower indebtedness, Canada's banking regulator, the Office of the Superintendent of Financial Institutions (OSFI), announced plans to cap mortgages for highly indebted borrowers. This initiative aims to limit loans to borrowers with mortgages greater than 4.5 times their annual income starting next year. The measure, reported by The Globe and Mail, seeks to mitigate financial risks by preventing borrowers from taking on excessive debt relative to their income. This policy change comes amid broader discussions on financial regulation, including debates on capital requirements for banks. In the United States, the Federal Reserve's top banking regulator indicated potential significant changes to proposals for lenders to hold more capital.
This is meaningless It caps uninsured mortgage holders to borrow at 4.5x income. You can't even get that anyways unless rates are around 2%.... because of other payment to income restrictions https://t.co/CKKtg7Xsdk
With 97% of public comments opposing or seriously concerned about the Basel Endgame proposal, it’s time for a new playbook. Say “no” to Basel Endgame’s costly new capital regulations. Learn more at https://t.co/JnsfkEyauC. #StopBaselEndgame
BREAKING NEWS CANADA REGULATOR TO CAP MORTGAGES FOR HIGHLY INDEBTED BORROWERS Houston, we have a problem?
Canada regulator to cap mortgages for highly indebted borrowers, newspaper says https://t.co/jVpq70ilMN https://t.co/twSYzNn2pB
The Federal Reserve’s top banking regulator said there will likely be significant changes to a controversial proposal to force lenders to hold more capital https://t.co/rOOtw8K8vf
Canada banking regulator to cap mortgages to highly indebted borrowers, newspaper reports https://t.co/Pr8R2gSKdt https://t.co/Tg9jErDbsZ
Canada’s banking regulator OSFI to cap mortgages to highly indebted borrowers https://t.co/z66UZdlDzP
CANADA’S BANKING REGULATOR OSFI TO CAP MORTGAGES TO HIGHLY INDEBTED BORROWERS - GLOBE AND MAIL
BREAKING, OSFI to limit loans to borrowers with mortgages greater than 4.5x their annual income starting next year. Per The Globe & Mail
In today’s @FinancialCmte hearing, Chairman McHenry quoted from our May 2022 statement about the Basel Committee lowering capital requirements for European GSIBs without public consultation. In contrast, the Fed’s process for deciding changes to U.S. capital requirements has been…