A Comparative Study of Mortgage Risk in High Rate Environments

  • Global Risk Institute
Toy Houses on Business Section of newspaper

About this Report

This report was completed by students of the Rotman School of Management MFRM Program, with financial and research support from Global Risk Institute.

The report examines the more than 550,000 variable rate fixed payment mortgages in Canada that come up for renewal between 2024 and 2026, and considers different scenarios that could develop, including different timetables for Bank of Canada rate cuts and different strategies that might be employed by borrowers. Given the historically low interest rates when these mortgages originated, the borrowers in question will face dramatic payment shocks that will vary from 25% to 70% on renewal.