So here’s some interesting statistics.

First, 75% of Canadian mortgages come due for renewal between 2024 and 2026. This is mainly because borrowing rates were so low five years ago. As you know interest rates have been climbing and the banks are concerned.

You do know that saying “The banks, they’re richer than you think”!

Second, in preparation to this tsunami of renewals and the knowledge that too many people spent all the money the bank was willing to lend them, the banks have set aside $4.3 billion (of our money) to cover mortgage holders that default. The low increase on mortgage payments is expected to be some 30% for many and as high as 60 6o 70% for others. Yup that’s the increase in payments!

The banks have identified their highest risk in 2025 as mortgage defaults with #3.15 billion coming due in 2025.

The mortgage market is at risk and this will put our economy under further stress as we work our way out of the current predicament of higher rates, too few houses in the inventory available for purchase and possibly the high winds of a Trump administration south of the border.