OSFI
Office of the Superintendent of Financial Institutions
Canadian mortgage term definition with formula, examples, and limits used by mortgage brokers.
Definition
Federal regulator overseeing Canadian banks, insurance companies, and trust companies. Sets mortgage underwriting rules including Guideline B-20 (stress test, LTV limits, income verification).
Example
OSFI Guideline B-20 requires all federally-regulated lenders to stress-test borrowers at max(rate+2%, 5.25%).
Related Terms
GDSMonthly housing costs divided by gross monthly income. Includes mortgage payment, property tax, heating, and 50% of condo fees.TDSAll monthly debt payments divided by gross monthly income. Includes housing costs plus credit cards, car loans, lines of credit, and other debts.LTVTotal mortgage debt divided by property value. Determines if CMHC insurance is required and which lenders qualify.CMHC InsuranceMandatory mortgage default insurance required when down payment is less than 20% (LTV > 80%). Enables up to 95% LTV financing.Stress TestBorrowers must qualify at a higher interest rate to ensure affordability if rates rise. Calculated as the maximum of contract rate + 2% or 5.25%.
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