MORTGAGE RENEWALS CAN ALSO CAUSE A RISK TO BANKS!!!
Sunday Nov 05th, 2023
Mortgage renewals at much higher rates are also a risk to Canadian banks, with the possibility of rising credit losses from 2025 if rates remain near their current levels.
Around 60% of Canadian mortgages are due for renewal in the coming three years, and an increase in payments at renewal “could be significant and represents a tail risk to Canadian banks,” according to RBC Capital Markets analyst Darko Mihelic.