Definition
The Office of the Superintendent of Financial Institutions (OSFI), in French BSIF, is the federal prudential regulator of Canadian chartered banks, trust companies, and federally regulated insurers. Its mission is to protect the stability of the Canadian financial system.
In mortgages, its main contribution is Guideline B-20 ("Residential Mortgage Underwriting Practices and Procedures"), in force since 2012 and revised in 2018 and 2023. It imposes on federally regulated lenders: the mortgage stress test at the qualifying rate (contractual rate + 2% or 5.25%, whichever is higher), LTV caps (80% on refinances, 65% on standalone HELOCs), strict income documentation rules, and concentration limits on non-conforming loans.
Provincial credit unions (Desjardins, Meridian) are not subject to OSFI — they fall under AMF supervision in Québec. In practice, they often align with B-20 for competitive consistency. This jurisdictional difference explains some Desjardins-specific flexibility on atypical files.