TORONTO — Canada’s main financial regulator on Thursday proposed new rules for residential mortgages including banning co-lending arrangements, or bundled mortgages, that sidestep rules designed to clamp down on risky lending.

The Office of the Superintendent of Financial Institutions also proposed rules requiring a stress test for all uninsured mortgages and that the maximum amounts lent out against a property’s value are adjusted for local market conditions.

© Thomson Reuters 2017