Canadian Banks Directed to Prepare for Mortgage Default Risks and ‘Credit Losses’

Canadian Banks Directed to Prepare for Mortgage Default Risks and ‘Credit Losses’
A person walks past multiple for-sale and sold real estate signs in Mississauga, Ont., on May 24, 2023. Nathan Denette/The Canadian Press
Chandra Philip
Updated:

The chief bank inspector has directed financial institutions to start assessing mortgages that could be at risk for default.

Superintendent of Financial Institutions Peter Routledge made the comments in a regulatory notice on March 11, saying bankers should focus on risky products, like variable rate mortgages with fixed payments, as first reported by Blacklock’s Reporter.