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On Tuesday morning, Canada's banking regulator (OSFI) published the final changes to its guidelines for residential mortgage underwriting, including a financial stress test for buyers who don't need mortgage insurance.

The Office of the Superintendent of Financial Institutions (OSFI) said Tuesday the changes will come into force by Jan. 1, 2018.


The main change is that homebuyers who don't require mortgage insurance because they have a down payment of 20% or more will have to prove they can continue to make payments if interest rates rise.

Other changes include restrictions on co-lending, or bundled mortgages, aimed at ensuring financial institutions do not circumvent rules that limit how much they can lend.

Further details to follow. 


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