After a sharp rise in mortgage repayment terms over the past few quarters, Canadian banks' home loans past 30 years have edged lower in the latest quarter but analysts say risks remain elevated with borrowing costs expected to stay higher for longer.
The Bank of Canada's 10 interest rates since last year have triggered a spike in monthly payments for variable rate loans and in cases of fixed payments, their monthly contribution largely covered only the interest portion of their loan.in Canada where banks are seeing mortgage amortizations getting extended beyond 30 years, sparking calls from regulators to take immediate action to mitigate risks.
CIBC's CFO Hratch Panossian told Reuters in an interview that about 8,000 clients had increased their monthly payments and just over 1,000 clients made lump-sum payments, to remove their mortgage from the negative amortization status, as a result of the outreach during the third quarter.Canada's total residential mortgage debt stood at C$2 trillion at the start of the year.
Still, the risks remain elevated as consumers are struggling to make monthly payments due to the rising cost of living.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/CAD Price Analysis: 200-EMA remains a key support ahead of US Employment dataThe USD/CAD pair retreats after a short-lived pullback move to near 1.3577 in the European session. The Loonie asset remained broadly sideways on Wedn
Read more »
EUR/JPY Price Analysis: Next stop at the 160.00 markEUR/JPY keeps the buying pressure well and sound and surpasses the 159.00 hurdle on Wednesday. If the move higher picks up extra pace, the cross shoul
Read more »
Advanced GC-MS detection enables metabolomics analysis in model animalsA research team led by Prof. Chu Yannan at the Hefei Institutes of Physical Science of the Chinese Academy of Sciences applied the untargeted analytical method of headspace solid-phase microextraction-gas chromatography-mass spectrometry (HS-SPME-GC-MS) to detect volatile organic compounds (VOCs) in rat organs and obtained the biological information of VOCs metabolized by related organs.
Read more »
USD Index Price Analysis: Extra losses likely below the 200-day SMADXY drops for the third session in a row and puts the 103.00 support to the test on Wednesday. If losses accelerate and the index breaks below the 200
Read more »
ANALYSIS: Media Rush to Dems’ Defense after GOP Debate Shines a Spotlight on Abortion ExtremismTwo of the media’s favorite things to lie about — Florida governor Ron DeSantis and abortion — converged the night of the first Republican pr...
Read more »
EUR/USD Price Analysis: Extra upside now targets 1.0970EUR/USD picks up further pace and climbs to weekly highs near 1.0930, an area coincident with the 100-day SMA, on Wednesday. The pair’s current moment
Read more »