Thursday Nov 16th, 2023


Underlying risks in Canada’s mortgage market are becoming more evident as borrowers face the sharpest spike in interest rates for over four decades, the national housing agency has said.

Tania Bourassa-Ochoa (pictured), senior specialist of housing research at Canada Mortgage and Housing Corporation (CMHC), told Canadian Mortgage Professional that the agency’s just-released residential mortgage industry report highlighted the impact that rate hikes to date have had on homeowners’ ability to repay their mortgage.

One out of three borrowers have seen their monthly mortgage payment jump since the Bank of Canada began increasing interest rates in March of last year.

Canadian mortgage holders are struggling in terms of their debt payments now.  About 45% of all outstanding mortgages across the country are expected to face higher interest rates upon renewal in 2024 and 2025, with monthly payments potentially rocketing by up to 40% of their current levels.

Canadians are having a hard time to making ends meet, and must prepare themselves well in advance for higher monthly mortgage payments!

Consumers are already working with longer  amortization periods, delaying big purchases, reducing consumption services of non-essential goods and services. 

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