Chief Canadian Bank Inspector Warns of Mortgage Payment Shock

Chief Canadian Bank Inspector Warns of Mortgage Payment Shock
Multiple for-sale and sold real estate signs in Mississauga, Ont., on May 24, 2023. The Canadian Press/Nathan Denette
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Canada’s chief bank inspector has warned that homeowners could face rising financial pressure in servicing their mortgages as many could face “significant payment shock.”

“Mortgagors will have to make up the deferred principal pay downs when they renew,” Superintendent of Financial Institutions Peter Routledge said, according to Blacklock’s Reporter. “This means they are at risk of suffering a significant payment shock.”