Canadian Mortgage Trends ~ January 13th, 2025
Despite interest rates having fallen materially in 2024, recent data show that many Canadian homeowners could still face payment shocks when their mortgages renew.
Around 60% of outstanding mortgages are set to renew by the end of 2026, and about 60% of those renewals—or roughly 40% of all outstanding mortgages—are expected to face higher rates, according to research from the Bank of Canada.
“These borrowers initially took out their loans when interest rates were near their trough, and some will be facing a large payment shock,” the central bank notes.
However, it adds that many of these borrowers have ample flexibility to manage any payment shocks thanks to having paid down part of their principal over those five years, as well as potential increases in home value over that time.
Click here to read the full article.
