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Cormier expressed particular concern about upcoming mortgage renewals, with a significant number of five-year fixed-rate mortgage terms about to end.

“The challenge is probably 2025-26 when we will see on the fixed-mortgage rates increase, it could be maybe $500, $1,000, $1,500 in increased monthly payments,” he told the Financial Post. “That will probably be a challenge. That’s why we are provisioning [for] some losses eventually.”

Cormier said that as much as 10% to 15% of Desjardins borrowers will be under stress.

Desjardins currently stands as Canada’s seventh largest financial institution in terms of assets.

Victor Tran of RATESDOTCA said in a recent interview with Canadian Mortgage Professional that the Bank of Canada’s hikes have pushed a sizeable increase in fixed rates, in turn compelling many borrowers to begin shopping for options like early renewals.

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