That's right.
The maximum amortization is one of several parameters that OSFI looks at for uninsured lending and that the minister looks at in the ministerial regulations for mortgage insurance.
The other parameters include, for example, the minimum down payment requirements and the maximum debt service ratio, meaning the maximum amount of your monthly income that can go towards your mortgage payment.
There is also the minimum qualifying rate, also known sometimes as the “stress test”, which basically looks at whether a consumer will be able to handle those payments if interest rates increase or if they face some other economic disruption.