Nov. 2 (Bloomberg) -- Canada’s Office of the Superintendent of Financial Institutions said that banks should maintain sound, prudent mortgage underwriting practices.
Canada’s main banking regulator issued a letter today to federally-regulated financial institutions after the Financial Stability Board published international underwriting principles.
“Given the current uncertainty and volatility in global capital markets, historically low interest rates, higher Canadian borrower debt-to-income levels, and relatively strong housing price appreciation, OSFI expects (lenders) to be extra diligent in maintaining sound and prudent mortgage underwriting practices,” Superintendent Julie Dickson wrote in the letter.
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