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OSFI (the Office of the Superintendent of Financial Institutions) is the federal regulator that supervises federally regulated banks and mortgage lenders, setting prudential underwriting rules such as the minimum qualifying rate through Guideline B-20. OSFI does not license individual mortgage brokers or agents — that falls to the provincial regulators.
OSFI’s job is prudential: it makes sure federally regulated financial institutions — the big banks and federally chartered trust companies — lend responsibly enough that the institutions themselves stay sound. Its best-known tool for mortgages is Guideline B-20, which sets underwriting expectations including the minimum qualifying rate (stress test).
OSFI does not license mortgage brokers, agents, or associates, and it does not regulate private lenders, most credit unions, or provincially incorporated mortgage finance companies directly. Licensing and day-to-day conduct of the people who arrange mortgages is handled provincially — by regulators such as FSRA in Ontario, BCFSA in BC, RECA in Alberta, and the AMF in Quebec.
Federally regulated lenders: banks and other OSFI-regulated institutions must underwrite to Guideline B-20, including qualifying borrowers at the greater of the contract rate + 2 percentage points or 5.25%.
Provinces license the people: OSFI sets lender-level rules; it’s the provincial regulators who license and discipline individual mortgage brokers, agents, and associates.
Not every lender is covered: private lenders and many provincially regulated lenders sit outside OSFI’s direct authority, though many mirror B-20 standards voluntarily.
Works alongside FINTRAC: OSFI’s prudential oversight is separate from FINTRAC’s anti-money-laundering mandate, which applies to brokers directly.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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