Canada’s banking regulator is looking at instituting new rules to ensure that banks know enough about borrowers before giving them a mortgage.
The draft rules, announced on Monday March 19, are designed to ensure that banks are collecting detailed information about a borrower’s identity, background, and willingness and ability to pay their debts on time before they approve a mortgage.
In addition, the proposed rules deal with due diligence the banks should conduct on the value of the property that the mortgage would be for. This is a great initiative to help people make sound financial decisions and protect our banking system, an integral part of our economy.
Like I always say, before buying a first home or upgrading, contact us to go over your financial plan. Brainstorming before you enter into potentially the biggest financial transaction of your life is prudent. We can help!