The recent decision by the Office of the Superintendent of Financial Institutions (OSFI) to maintain the mortgage qualifying rate for Canadian banks is a welcome positive that helps reinforce credit stability, according to Fitch Ratings.
Fitch said that OSFI’s move is consistent with the regulator’s stated commitment to tightening regulations and capital requirements, which will help mitigate risks that Canadian banks are facing WITH lingering economic volatility.
The current Stress Test requires borrowers to qualify at the greater of 5.25% or the mortgage contract rate plus 2%
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