Fourth Quarter, 2023 Financial Overview
Canadian Mortgages Renewal Profile
Impacts of payment increases at renewal expected to be manageable
•
Using an illustrative 6% rate at time of renewal, and no borrower income growth since origination, mortgage payment increases are forecasted to
be less than 5.1% of clients' income
•
Low LTV of renewal mortgages ranging from 41% to 60% over the next 5 years
•
Proactive outreach included a number of initiatives throughout the year to help our clients through the rising interest rate environment
Current Balances by Renewal Year1 ($B)
90
■ Variable Rate Fixed Rate
Assumes interest rates stay constant
at 6% and income at origination does
not increase; for illustrative purposes
70
30
30
14
49
41
7
56
60
32
60
34
13
17
Average Customer Profile by
9
Renewal Year
FY24
FY25
FY26
FY27
FY28+
Original qualification rate²
4.9%
5.0%
5.2%
5.2%
6.2%
Current LTV
41%
46%
51%
60%
59%
Monthly payment increase
$349
$462
$555
$690
$175
% of monthly payment increase
21%
26%
28%
30%
10%
Payment increase as % of total income at
3.0%
3.7%
4.1%
5.1%
1.4%
origination
Endnotes are included on slides 58 to 66.
CIBC
Fourth Quarter, 2023
29
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