OSFI – the regulator of all Canadian Financial Institutions has imposed underwriting guidelines for Residential Mortgages on all regulated lenders and CMHC.  These underwriting guidelines are known as B20 and have been created at the insistence of the Financial Stability Board, the financial oversight organization of all G20 nations.  The creation of these guidelines is a direct result of the financial crisis caused by poor American mortgage lending practices.

Here we will provide a brief overview of the components of B20 in general terms and explain what it means to Borrowers, Mortgage Brokers and Lenders. Continue reading →