OSFI is tightening mortgage lending again. But this time, it’ll be less impactful for consumers.
The banking regulator issued its final Mortgage Insurer Capital Adequacy Test (MICAT) guideline last week. MICAT is the “framework for assessing the capital adequacy of mortgage insurance companies,” OSFI says, and it takes effect January 1, 2019.
According to National Bank Financial (NBF) analysts, insurers’ “base total asset requirement increases by 5% relative to current levels (which remains based on loan-to-value, credit score, outstanding insured balance and remaining amortization).”