11 April 2014

The new rules for the banks are known as B20. They made lenders be extremely cautious when checking credit history of borrowers, their documentations and housing appraisals. In addition to it, the maximum amount a consumer can borrow on a home equity line of credit was cut to 65% of the total home’s cost.

As a result, many economists say those standards caused a home sales decline in late 2012 and early 2013.

Now the housing industry is worrying about whether the new rules for mortgage insurers will cause a similar effect. At first OSFI said a draft of the new rules would be released at the beginning of 2013. Later it was postponed to the end of last month.

As soon as we have more details we will immediately update you with new information.