Bank vs. Broker: OFSI’s New Rules Tip the Scale Toward Mortgage Brokers
OSFI Just Made It Harder for Mortgage Bankers to Compete.
Canada’s mortgage industry is evolving—and so is the role of mortgage professionals.
With OSFI’s recent clarification on how income-producing residential real estate is treated under capital rules, we’re seeing a noticeable shift in how deals get done… and who’s best positioned to do them.
If you’re a mortgage professional working for a bank, this new regulatory environment may feel increasingly restrictive. For those in the broker channel, however, the opportunity has never been clearer.
🔍 What Did OSFI Change?
On September 20, 2025, OSFI (Canada’s banking regulator) clarified that:
- Income already used to qualify for one mortgage cannot be reused to qualify for another.
- Mortgages classified as income-producing require banks to hold more capital—making them more costly and complex to approve.
For borrowers with multiple properties, rental income, or non-traditional financial profiles, this could mean one thing: fewer approvals at the bank.
🏦 The Bank Challenge
For mortgage specialists at banks, these changes tighten the qualification box:
- Less flexibility using rental income
- Stricter debt servicing and capital reserve requirements
- Potentially less competitive pricing due to increased risk load
The result? More declined deals, more frustrated clients, and fewer tools in your toolkit.
The Broker Advantage
Mortgage brokers aren’t tied to a single institution’s rules. Here’s how that plays out in the post-OSFI landscape:
| ✅ Broker Benefit | 💡 Why It Matters |
| Access to multiple lenders | Brokers can work with non-bank and alternative lenders unaffected by OSFI’s rules |
| More flexible underwriting | Ideal for self-employed, investors, or those with complex financials |
| Competitive positioning | Brokers can say “yes” when the bank says “no” |
| Higher earning potential | More deals. More solutions. More value to offer. |
What This Means for You
If you’re currently working in a bank and feeling boxed in by regulations, it may be time to explore the broker channel. Mortgage brokers today:
- Help a wider range of clients
- Offer more tailored financing options
- Build independent brands and client bases
- Often earn 2–4x more than their bank-based counterparts
Final Thought
Regulatory changes don’t just impact borrowers—they reshape careers.
As banks face tighter lending rules, mortgage brokers are stepping up to meet growing demand with more flexibility, creativity, and client-first solutions.
This is more than a market shift—it’s a career opportunity.