The Office of the Superintendent of Financial Institutions
(OSFI) has indicated that Guideline B-20 is working, and that the
associated "stress test" has improved the resilience of
the Canadian financial system.1 On June 10th, 2019, OSFI
published information about B-20's impact on the top 19
federally regulated lenders who represent 95 percent of all
uninsured mortgages. The bulletin, which includes a history of B-20
and OSFI's broader regulatory role, comes amidst growing public
debate over the benefits of the federal government's current
minimum qualifying rate, also known as the "stress
test".2
OSFI's mandate is to protect Canada's financial system
by ensuring the stability of its institutions. It strives to
accomplish this goal by creating standards that protect the economy
in both normal conditions and in the event of financial
downturns.3 In 2017, for example, OSFI issued
revisions to Guideline B-20 in response to dramatically increasing
real estate prices
