Mortgage crisis threatens Canada

The crisis in the mortgage segment looms over Canada. The Central Bank urges banks to eliminate risks. Interest-bearers are forced to choose the middle line of work with those who are credited.

The crisis in the mortgage is already close. After all, the Canadian Central Bank has already called on bankers to reduce the risks that arise when extending a mortgage, writes xrust. Many borrowers, the regulator warns, are trying to offset the increase in loan costs. The latter is growing on the wave of the rising rate of the Central Bank.

In other words, the Central Bank sees that the bankers are following the borrowers who ask the financiers to increase the repayment period. The result is that the debt will be paid off longer, accumulating the bank's debt. The entire banking segment operating in mortgages will lose profitability, and some will become unprofitable.

Such a trend threatens with a general crisis. After all, part of the mortgage holders will definitely go bankrupt, turning from potential bankrupts into really ruined people. Bankers are advised to repay debts at the first opportunity, reducing the amount issued as much as possible.

About half of the borrowers, the Central Bank states, took out a mortgage with a floating rate in 2021, and this year there were three times less of such loans.

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