Canada’s financial regulator is urging lenders to tackle risks from mortgage extensions at the “earliest opportunity” as many borrowers try to navigate higher mortgage costs after the Bank of Canada’s surprise rate hike last week.
The Office of the Superintendent of Financial Institutions’ (OSFI) urgency underscores the concern about the risk accumulating in Canadian lenders’ books as the central bank has resumed interest rate hike after a four-month pause. Canada’s central bank has raised interest rates to a 22-year high of 4.75% and analysts are betting on another 25 points increase next month.
Read More : Canada’s Bank Regulator Urges Lenders to Address Risks of Mortgage Extensions