Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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Apart from banks there are many financial institutions that can provide a borrower with a mortgage. Credit Unions are non-bank lenders.

Credit Unions are provincially regulated. A list of Credit Unions operating in Ontario can be obtained from here.

Federal Government has been actively trying to bring the provincial Credit Unions into a broader framework overseen by the federal counterparts of provincial regulators.

As they are not directly overseen by OSFI – the B20 and B21 do not apply to them. As an example – they can still provide revolving HELOC at 80%.

According to CMT – BC regulator is now introducing regulations to manage the risk in the provincially regulated lending process.

The Financial Institutions Commission (FICOM) (BC regulator) in its proposed Residential Mortgage Underwriting Guidelines is sounding more or less like OSFI’s B20 guideline. It is proposing 65% LTV for non-amortizing HELOCs.

We expect that this change will come to other provinces soon.