this post was submitted on 07 Jul 2023
43 points (97.8% liked)

Canada

7230 readers
292 users here now

What's going on Canada?

Communities

🍁 Meta

🗺️ Provinces / Territories

🏙️ Cities / Local Communities

🏒 SportsHockey

Football (NFL)

  • List of All Teams: unknown

Football (CFL)

  • List of All Teams: unknown

Baseball

Basketball

Soccer

💻 Universities

💵 Finance / Shopping

🗣️ Politics

🍁 Social and Culture

Rules

Reminder that the rules for lemmy.ca also apply here. See the sidebar on the homepage:

https://lemmy.ca

founded 4 years ago
MODERATORS
[email protected]
43
Canada Adds Guidelines for Banks to Prevent Mortgage Defaults (www.bnnbloomberg.ca)
submitted 1 year ago by [email protected] to c/[email protected]
13 comments fedilink hide all child comments
 

Canadian banks need to take steps to assist mortgage holders who are struggling to stay above water after a rapid spike in interest rates, according to new guidelines issued Wednesday.

you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 11 points 1 year ago* (last edited 1 year ago)

Canadian banks have been seeing a rise in such negatively amortizing mortgages, with the expected time for a borrower to pay back the loan sometimes stretching past 30 years. At least one quarter of the Canadian mortgage portfolio at Toronto-Dominion Bank, Bank of Montreal and Canadian Imperial Bank of Commerce are now in that category. And nearly a third of Royal Bank of Canada’s domestic borrowers are are covering their interest only, so their amortizations are extending too.

Oh boy... 😬 At these proportions, the banks don't have a choice but to stretch the amortizations.