B-20
OSFI Guideline B-20
OSFI's underwriting guideline that governs federally regulated lenders. B-20 introduced the mortgage stress test and the dual qualifying rate, and shapes most of the rules you experience at any A lender.
B-20 is the rulebook behind most of what you experience as a borrower at a bank or monoline. It requires federally regulated lenders to verify income, scrutinize where your down payment came from, and qualify you at a higher stress-test rate rather than your actual contract rate.
Critically, B-20 only binds federally regulated lenders. Provincially regulated credit unions and private lenders are not bound by it — which is exactly why an alternative lender can sometimes approve a file that a Big-6 bank declines on the same numbers.
OSFI reviews B-20 periodically, and changes to the qualifying rate or loan-to-value limits ripple through the whole market. If you're close to your borrowing ceiling, a broker can model your file against both B-20 and non-B-20 lenders before you firm up an offer.
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