https://www.theglobeandmail.com/business/article-canadas-economy-faces-900-billion-mortgage-renewal-shock
Top Poster of the Day:
BipoccutetwinkZ-slur
Current Registered Users: 27,857
30% Vaxxed
30% Infected
Welcome to the Marsey News Network, the official news hole of rdrama! This is where you post anything that happened on the news. Politics, general news, good news, any new in any topic that doesn't have it's own hole from any source is welcome! However, if you post an unreliable source, it may be flaired appropriately. Wingcucks welcome and slapfights encouraged!
Rules:
1. Follow sitewide rules
2. Post News
3. Have Fun! Don't be boring.
4. No chudrama-tier content. Rightoid news sources are allowed, but anything that belongs in chudrama or could get the site deplatformed will be moved to chudrama.
5. @DarkDeity and
@Spiderman has the right to post whatever news they want in this hole
6. Be nice.
/h/mnn SETTINGS /h/mnn LOG /h/mnn MODS /h/mnn EXILEES /h/mnn FOLLOWERS /h/mnn BLOCKERS
Live commit: f8d591d
Jump in the discussion.
No email address required.
"Oh no, I got an adjustable rate mortgage and my interest rate is changing, just like they said it might"
Are we supposed to feel sympathy, or?
Jump in the discussion.
No email address required.
consider that fixed-rate mortgages are illgal, and that canada has a representative democratic government
so...
no
Jump in the discussion.
No email address required.
Jump in the discussion.
No email address required.
More options
Context
More options
Context
More options
Context
Good.
Jump in the discussion.
No email address required.
More options
Context
Gamblers are just doing an ironic bit when they lose all of their money gambling then complain about it right?
Jump in the discussion.
No email address required.
More options
Context
CANADA'S ECONOMY FACES $900-BILLION MORTGAGE RENEWAL SHOCK
The sharp run-up in interest rates over the past 19 months has been
painful for consumers, but unless rates drop significantly, almost
two-thirds of Canadian mortgage borrowers still face a punishing
“payment shock” over the next three years.
Between 2024 and 2026, an estimated $900-billion worth of Canadian
mortgages – almost 60 per cent of all outstanding mortgages at
chartered banks – are due to renew and could face a sharp increase
in payments, according to a report released this week by Darko
Mihelic, an analyst who covers the banking sector for RBC Capital
Markets. Those payment increases range from a weighted average of 32
per cent next year to 48 per cent in 2026.
The focus of the report is the impact the payment shocks will have on
the retail operations at Canada's big banks, but the economic
fallout is obvious if the current interest rate environment persists.
The biggest shock awaits fixed-payment, variable-rate mortgages set to
renew in 2026. A five-year variable mortgage renewing that October
would see payments jump 76 per cent if mortgage rates stayed around 6
per cent. A one-percentage-point drop to 5 per cent would ease the
payment shock, but only to 63 per cent. “Interest rates would need
to decline significantly to ‘save' this cohort,” the report
says. Even if the Bank of Canada were to slash its benchmark rate to
0.25 per cent by that year, payments for variable-rate mortgages as a
whole would still shoot up 20 per cent.
What do Shopify, Drake and Taylor Swift have in common? Take our
business and investing quiz
There have been fears these increases could lead to a rise in
defaults, but Mr. Mihelic believes those fears are overblown. That's
because banks are already taking measures to help overstretched
borrowers, such as working with their clients to increase monthly
payments or extending the amortization of their loans.
But those measures will still leave households with less money to
spend elsewhere. As it is, the report notes, the Bank of Canada's
latest consumer survey found that almost 60 per cent of respondents
have been reducing their spending.
_Decoder is a weekly feature that unpacks an important economic
chart._
EDITOR'S NOTE: This article has been updated to clarify that
variable-rate mortgages with fixed payments (as opposed to those with
payments that increase as interest rates increase) will receive the
biggest shock upon renewal in 2026.
Jump in the discussion.
No email address required.
You could have done crack instead of this shit
Jump in the discussion.
No email address required.
I'm an adult. I can do both.
Jump in the discussion.
No email address required.
More options
Context
More options
Context
More options
Context
Snapshots:
ghostarchive.org
archive.org
archive.ph (click to archive)
Jump in the discussion.
No email address required.
More options
Context