BC MORTGAGE BROKERS ENDORSE OFSI’S DECISION TO LEAVE REQUALIFYING RULES ALONE

VANCOUVER – Homeowners facing mortgage renewals can breathe easier now that the Office
of the Superintendent of Financial Institutions (OSFI) has reversed its proposed amendment to
require borrowers to re-qualify for their mortgages at renewal. This decision is heartily supported
by The Mortgage Brokers Association of BC (MBABC).

“We are immensely pleased that OSFI has responded so quickly to industry concerns”, says
Jared Dreyer, MBABC President. “This announcement is very welcome news for current
Canadian mortgagors as the renewal process will continue unchanged. The requirement for
borrowers to re-qualify their mortgages at renewal, even if they remained with their same lender,
could have resulted in severe financial hardship for some homeowners.”

OSFI did, however, call on banks to periodically review a client’s current credit situation,
although not necessarily at renewal, to effectively evaluate their credit risk. OSFI guidelines on
other mortgage underwriting changes will be forthcoming within the next couple of months.

With the complexities of the mortgage market, making an uninformed mortgage choice can
easily cost consumers thousands of dollars. Borrowers and current mortgage holders need to
ensure their buying or refinancing decisions are educated ones by using the services of a
mortgage professional.

For more information www.mbabc.ca.