Canadian Bail-in Regime Update
Canadian Mortgages Renewal Profile
Impacts of payment increases at renewal expected to be manageable
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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 4.1% of clients' income
Low LTV of renewal mortgages ranging from 42% to 61% 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
90
Current Balances by Renewal Year¹ ($B)
Assumes interest rates stay
constant at 6% and income at
origination does not increase; for
illustrative purposes
69
13
29
55
■ Variable Rate
■Fixed Rate
ah.
33
34
5
61
56
28
15
21
4
11
Average Customer Profile by Renewal Year
FY24
FY25
FY26
FY27
FY28+
Original qualification rate
4.9%
5.0%
5.2%
5.4%
6.3%
Current LTV
42%
46%
52%
61%
60%
Monthly payment increase
$344
$446
$527
$563
$140
% of monthly payment increase
21%
25%
27%
24%
8%
Payment increase as % of total income
3.0%
3.6%
3.9%
4.1%
1.1%
at origination
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Endnotes are included on slides 49 to 54.View entire presentation