MICAT Total Requirements for FTHBI Mortgages

The Office of the Superintendent of Financial Institutions (OSFI) has issued an advisory for mortgage insurers regarding capital requirements for insured mortgages issued under the new First-Time Home Buyer Incentive (FTHBI) program.

The advisory, in conjunction with the Mortgage Insurer Capital Adequacy Test (MICAT) guideline, sets out the regulatory framework within which OSFI assesses whether a mortgage insurance company maintains adequate capital for FTHBI insured mortgages.

The advisory comes into effect on November 1, 2019.