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Bank Czar Consults On  More Capital For Negative Amortization Mortgages

CANADA
  • OSFI proposes requiring "holding more capital that aligns with the increased risk of mortgages in negative amortization with a loan-to-value ratio (LTV) above 65%"
  • "The proposed changes should encourage banks to lessen the number of mortgages that would otherwise go into negative amortization"
  • Comments are due Sept 1
  • Canada has one of the world's most stretched housing markets according to the IMF; more home borrowers are losing ground amid central bank interest-rate hikes
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

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