Investor Presentation February 2024
Canadian Mortgage Portfolio Renewal Profile
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The impact of higher interest rates on payments is primarily realized upon renewal for both fixed and variable rate mortgages
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Variable rate mortgages with fixed payments are impacted by interest rate changes via the amortization period, until renewal
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$23.0B of variable rate mortgages are in negative amortization¹, down 23% Q/Q, representing ~48% of total variable rate mortgages,
~15% of the total mortgage portfolio; down from ~63% and -20% respectively in Q4'23
Only 12% or $17.6B in mortgage balances are renewing in the next 12 months; over 70% of mortgages renew after F2025
In F2023, renewing customers experienced an average increase to their regular payments of 22% for variable rate mortgages and 21%
for fixed rate mortgages
Mortgage Maturity Schedule
($150.0B; 68% fixed rate, 32% variable rate)
Mortgage LTV by Bureau Scores
54.7
■Fixed Variable
32%
13.5
37.5
27.1
12.5
2.5
18.2
23.3
41.2
0.9
24.6
7.9
11.6
14.2
10.3
F24
F25
F26
F27
F28+
Payment Increase at Renewal
(For illustration purposes)
3%
1%
2%
1%
21%
19%
2% 2%
1%
2% 3%
0% 1% 1%
9%
Payment at Renewal
F24
F25
F26
F27
F28+
Bureau
Average payment
Scores
<620
$250
$350
$450
$650
Increase ($)²
$50
620-680
681-720
>720
<620
620-680
681-720
>720
<620
620-680
681-720
>720
<620
620-680
681-720
>720
LTV %
Average payment
<=50%
51%-65%
66%-80%
>80%
15%
22%
24%
28%
Increase (%)²
3%
1 Variable rate mortgages in negative amortization, with all of the contractual payments currently being applied to interest, and the portion of interest due that is not met by each payment is added to the principal
2 The average payment increase reflects an assumed interest rate of 5.75% at renewal and includes regular payments and additional pre-payments made to date
BMO M
Investor Presentation ⚫ February 2024
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