that 25.2 per cent of its residential mortgage portfolio was comprised of loans with amortizations at or exceeding 35 years. Leah Zlatkin, a mortgage broker and expert with LowestRates.ca, said in an interview with BNNBloomberg.ca that the cost of variable rate mortgages has been going up in accordance with interest rate hikes from the Bank of Canada.
“In order to allow you to pay the same amount of payment and to have the interest rate going up inside of that payment amount and the principal amount being reduced, your amortization – or the length of time within which you need to pay that mortgage back – gets elongated,” she said. RENEWALS “Those lenders may not be as ready to provide those renewals or they may qualify you at [the] time of renewal, and if you don't qualify, they may not issue you a renewal,” Zlatkin said, adding that this will play out over the next three to four years.Most homes in Canada present good loan-to-value opportunities for lenders, she added, which generally incentivizes banks to renew mortgages, and to help people find ways to continue their payments.