mortgage holders are seeing their loan balances grow, as rising interest rates make it harder for them to pay off their homes.
“It’s absolutely a sign of stress to come. It’s just the stress isn’t here yet,” said Mike Rizvanovic, financial services analyst with investment bank KBW. Asked whether borrowers with negative amortizations will be able to handle the higher mortgage payments at renewal time, CIBC pointed to comments its chief risk officer said on its recent conference call.
At least two other major lenders, Toronto-Dominion Bank and Bank of Montreal, offer similar products that allow mortgages to negatively amortize. However, TD and BMO did not provide any disclosure on the share of borrowers that have a negative amortization. TD did not respond to a query on the matter. BMO spokesman Jeff Roman said its “reporting methodologies are in accordance with industry guidelines.
Today, the Bank of Canada’s benchmark interest rate is 4.5 per cent compared with 0.25 per cent a year ago.
Duh
Bankers should be closely scrutinized. Tax them into the ground
It’s a wonderful world for bankers. Remember this every time you visit your bank.
Property Property Latest News, Property Property Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »