IPFS News Link • Canada
Three of Canada's largest banks are seeing ~20% of their outstanding mortgages...
• https://twitter.com, The Kobeissi LetterWhat does this mean?
Monthly payments on ~20% of mortgages at BMO, TD, and CIBC are no longer enough to cover interest expense.
This means you end up owing more than your original loan amount over time.
Typically, variable rate mortgages with fixed payments experience this in a rapidly rising interest rate environment.
These homeowners may begin to foreclose over the next few months.
Important trend worth watching.
Three of Canada's largest banks are seeing ~20% of their outstanding mortgages in negative amortization.
— The Kobeissi Letter (@KobeissiLetter) September 18, 2023
What does this mean?
Monthly payments on ~20% of mortgages at BMO, TD, and CIBC are no longer enough to cover interest expense.
This means you end up owing more than your… pic.twitter.com/pGHhOQ7G2D