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Canada bank regulator says lenders should urgently tackle risks from mortgage extensions
June 14, 2023 | Posted by: Kiruban Kana
In an effort to mitigate potential risks in the housing market, Canada's banking regulator has urged lenders to address the challenges posed by mortgage extensions. The Office of the Superintendent of Financial Institutions (OSFI) has raised concerns about the increasing number of borrowers seeking mortgage extensions due to financial hardships caused by the COVID-19 pandemic. This article highlights the regulator's call for lenders to carefully assess the creditworthiness of borrowers seeking mortgage extensions and implement appropriate risk management measures. The aim is to prevent a buildup of unsustainable debt and potential housing market instability. The article also touches upon the impact of rising interest rates and emphasizes the importance of proactive risk management by financial institutions to ensure the stability of the mortgage lending sector in Canada.
read more here:
https://www.reuters.com/business/finance/canadas-banking-regulator-urges-lenders-tackle-risks-mortgage-extensions-2023-06-13/