Canada’s new mortgage rules – What you need to know

On January 1, 2018, the revised Guideline B-20 came into effect, governed by the Office of the Superintendent of Financial Institutions (OSFI). The changes to Guideline B-20 reinforce OSFI’s expectation that federally regulated mortgage lenders (FRML) remain vigilant in their mortgage underwriting practices. The full outline of the revised Guideline can be found on their website.


How do these new changes affect you?

If you have a down payment of 20% or more


As of January 1, 2018, you will be subject to a ‘stress test’ that is used to determine whether a homebuyer would be able to afford their principal and interest payments if interest rates increase. This ‘stress test’ will use either the customer’s mortgage interest rate plus 2% or the 5-year benchmark rate published by the Bank of Canada, whichever is higher.

If you have applied for a mortgage prior to January 1, 2018

The rules took effect January 1, 2018. We suggest connecting with your current BMO Mortgage Advisor to discuss how this may affect your mortgage loan.

If you are a current BMO Mortgage customer ready to renew

The new rules do not apply when you are renewing your existing mortgage with BMO – they only apply to new mortgages (including switch and refinance mortgages). Canada’s new mortgage rules came into effect on January 1, 2018. At BMO, we’re here to help you understand how these changes may affect you and your home financing. Our Mortgage Advisors are ready to guide you through these changes.

Let’s connect:

Connect with your BMO Mortgage Advisor today. If you do not currently have a BMO Mortgage Advisor, you can:

Call us at 1-877 CALL-BMO (225-5266)

Book a branch appointment online at

Connect with a BMO Mobile Mortgage Specialist at