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OSFI just freed up more room for Canada’s Big Six banks to deploy capital.

Published July 14, 2026

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OSFI just freed up more room for Canada’s Big Six banks to deploy capital.

The domestic stability buffer dropped from 3.5% to 3%. The banks are already sitting at an average 13.5% common equity tier-one ratio, well above OSFI’s new 11% expectation.

This does not mean $673 billion is about to pour into mortgages. It means the regulator thinks the banks can absorb losses and wants more credit moving through a stressed economy as the mortgage cycle resets.

That is a strange signal to send while household debt is still high and house prices remain stretched against incomes.

#CanadianRealEstate #HousingMarket #Banking #Economics

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