While it may seem strange to remove the regulations that make sure only those who can afford it can borrow it, the idea behind the move is to open up the doors to those borrowers who may not fit the standard purchaser mould.
Lets use an example.
A First Home Buyer has a pre-approval for $500,000, which she can afford based on her salary, savings, living expenses etc. While she is waiting for her finance approval on her new home she gets a raise at work.
Under the current RLO’s, her circumstances have changed and she has no evidence of sustained income at this new level and she would have to restart the entire finance process from scratch. She could very well lose this current deal!