“Today’s economic environment is characterized by high household debt, increased cost of living and higher interest rates,” FCAC said in its release, which did not put forward specific requirements for lenders to meet.  

The watchdog reiterated that expectations put in place during the COVID-19 pandemic, such as not charging interest on interest, remained – and said it expected lenders to provide as much support as possible to variable-rate mortgage holders whose rates have surged and fixed-rate borrowers facing challenges upon renewal.

The new recommendations are aimed at “protect[ing] Canadians with mortgages who are experiencing severe financial stress,” FCAC’s commissioner Judith Robertson said in a press release accompanying the news.