Canada’s banking regulator has finalized changes to its Capital Adequacy Requirements (CAR) guideline that clarify how lenders must treat income-producing residential real estate.

The revisions, effective with institutions’ first fiscal quarter of 2026, update how banks classify mortgages where rental income is a significant factor.

At OSFI’s quarterly Industry Day, the regulator stressed that income used to qualify for one mortgage cannot simply be counted again for another, tightening how both rental and employment income can be applied across multiple properties.

Mark Joshua, OSFI’s Director of Capital and Liquidity Standards, said the intent is “to ensure that income that’s used for one mortgage is not, then again, used a second time for another one. So…the income that was used on the first mortgage is removed or corrected for” when assessing a borrower’s additional properties.

Canada’s banking regulator has finalized changes to its Capital Adequacy Requirements (CAR) guideline that clarify how lenders must treat income-producing residential real estate.

The revisions, effective with institutions’ first fiscal quarter of 2026, update how banks classify mortgages where rental income is a significant factor.

At OSFI’s quarterly Industry Day, the regulator stressed that income used to qualify for one mortgage cannot simply be counted again for another, tightening how both rental and employment income can be applied across multiple properties.

Mark Joshua, OSFI’s Director of Capital and Liquidity Standards, said the intent is “to ensure that income that’s used for one mortgage is not, then again, used a second time for another one. So…the income that was used on the first mortgage is removed or corrected for” when assessing a borrower’s additional properties.

In mid-August, Ontario Premier Doug Ford announced more than 60,000 Ontario public service workers would return to a four-day in-office work week starting in October, before returning to the five-day in-person schedule of the pre-covid days in January 2026. The announcement followed similar moves from Canada’s big banks, including Scotiabank, BMO, TD, and RBC, all of which will require workers to be in office for at least four days a week starting this fall.

The news has been met with mixed reactions from workers themselves, but the return-to-office (RTO) trend undeniably bodes well for commercial real estate — particularly the office and and retail markets — in cities where these businesses and government offices are located.

In mid-August, Ontario Premier Doug Ford announced more than 60,000 Ontario public service workers would return to a four-day in-office work week starting in October, before returning to the five-day in-person schedule of the pre-covid days in January 2026. The announcement followed similar moves from Canada’s big banks, including Scotiabank, BMO, TD, and RBC, all of which will require workers to be in office for at least four days a week starting this fall.

The news has been met with mixed reactions from workers themselves, but the return-to-office (RTO) trend undeniably bodes well for commercial real estate — particularly the office and and retail markets — in cities where these businesses and government offices are located.

A Toronto condo was sold at a staggering $800,000 loss this month despite only being purchased six months ago. 

The condo’s turbulent sales history was shared on X, where many took the opportunity to reflect on the current state of the city’s real estate market, particularly its condo segment. According to public MLS data, the Yorkville condo was originally purchased in March 2025 for $3.15 million. 

Just a few months later, the apartment was listed for sale again in June 2025 for $2.99 million, but was taken off the market shortly after. Recently, the condo was listed again for nearly $2.55 million, and went on to sell for $2.35 million a few days later — representing a loss of $800,000 when compared to its price earlier this year. 

Pandemic distortions pushed suburban prices beyond their historical relationship with the city and that spread is now narrowing. The great return-to-office recall will continue to reinforce that pattern, pulling value back toward the core.

Toronto is about to stage a drama unlike any other city on the continent. After years of silence in its glass towers, the country’s most powerful employers are summoning workers back, not for a day or two but for four and five days a week. Sixty thousand civil servants, armies of bank employees, the foot soldiers of telecom empires, all called to fill desks that have sat half empty since the world locked down. What looks like a cultural correction is in fact an economic experiment, one that will decide the fate of suburbs, test the strength of downtown real estate, and reveal just how far employers are willing to go in a labour market that has turned against its workers.