Financial Markets Summary Q4 2022
RETAIL MORTGAGES RATE TYPE AND MATURITY PROFILE
(As at October 31, 2022)
Canadian Mortgages Distribution by Rate Type
Fixed Rate
67%
Variable
Rate
33%
$59.3B (1)
Maturity Profile of Fixed Rate Mortgages
■ For variable rates, the monthly payments are adjusted to
reflect rate increases, allowing borrowers to progressively
adapt their budget and avoid a higher payment shock at
renewal
■ Clients with variable rates show a better risk profile (higher
income / net value and lower historical delinquency) and can
fix their rate at any time
■ Share of clients opting for variable rate at origination
decreased significantly since rates started to increase
Renewing Next
12 months
■ 11% of the fixed rate mortgages are due for renewal in the
next 12 months
■ 73% of Uninsured renewing in the next 12 months have a
remaining amortization of less than 25 years
■ 93% of Uninsured renewing next 12 months have an LTV
below 70%
High risk (2) uninsured borrowers with remaining amortization
of over 25 years represent less than 0.1% of fixed rate
mortgage portfolio
As % of Total Fixed Rate
11%
% Insured
43%
% Quebec
60%
Average LTV for Uninsured
40%
Average Bureau Score for Uninsured
787
(1) Total RESL excluding HELOCs
(2) Bureau score < 640 / LTV >75%
18 |View entire presentation