Real estate secured lending and escalating mortgage payments are two of the top risks facing Canada’s financial system as high borrowing costs continue to put pressure on homeowners, Canada’s top banking regulator says.
As 76 percent of outstanding mortgages come up for renewal by the end of 2026, homeowners could potentially face “payment shock” due to higher interest rates compared with when they secured their interest rate, said Superintendent of Financial Institutions Peter Routledge in his annual risk outlook. Homeowners who took out mortgages when interest rates were lower in 2020 to 2022 will be especially susceptible.
