The federal banking regulator is issuing new draft guidelines for home mortgage underwriting.
The Office of the Superintendent of Financial Institutions is looking for input from the industry and others on the proposed guidelines.
Canada avoided the housing meltdown in the U.S., due in large part to stricter lending rules here at home.
The regulator says the industry has performed well, but that risks remain as household debt remains high.
The new guidelines include a recommendation for a board-approved underwriting policy to help manage risk.
As well, lenders need to perform reasonable due diligence to record and assess things like a borrower’s identity, background and “willingness” to repay the debt.
Comments on the proposed guidelines are due May 1.