The Office of the Superintendent of Financial Institutions has updated the Mortgage Insurer Capital Adequacy Test for 2027, introducing a separate category for low-rise multi-unit residential construction and reducing its base risk weight from 150% to 130%. The change aligns mortgage insurer capital requirements more closely with the lower risk profile of these exposures and with related 2027 capital framework updates. Low-rise projects are defined as having fewer than seven stories and 200 units. Projects outside that definition will not receive the preferential treatment, while high-rise residential construction exposures remain subject to a 150% risk weight. The revised framework, which sets minimum capital requirements for mortgage insurers, takes effect Jan. 1, 2027.
2026-09-10Office of the Superintendent of Financial Institutions
Canada's Office of the Superintendent of Financial Institutions cuts low-rise residential construction risk weight to 130% under MICAT 2027
The Office of the Superintendent of Financial Institutions has reduced the base risk weight for low-rise multi-unit residential construction exposures from 150% to 130% under MICAT 2027. Eligible projects must have fewer than seven stories and 200 units, while high-rise exposures remain at 150%. The changes take effect Jan. 1, 2027.