Story perspectives

BMO Tightens Lending for Self-Employed Amid Economic Uncertainty

3/26/2025

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Summary

Story summary

BMO announces stricter lending rules for self-employed individuals in high-risk sectors due to economic uncertainty.
The bank reduces the total debt service (TDS) ratio from 44% to 42%, impacting homebuyer affordability in Toronto.
Critics contend this policy disproportionately affects self-employed workers, while BMO emphasizes individual application assessments.
This decision coincides with Canada's trade tensions with the US, which are influencing housing market confidence.

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Story summary

BMO announces stricter lending rules for self-employed individuals in high-risk sectors due to economic uncertainty.
The bank reduces the total debt service (TDS) ratio from 44% to 42%, impacting homebuyer affordability in Toronto.
Critics contend this policy disproportionately affects self-employed workers, while BMO emphasizes individual application assessments.
This decision coincides with Canada's trade tensions with the US, which are influencing housing market confidence.