Senior Deputy Governor of the Bank of Canada Carolyn Rogers takes part in a press conference in Ottawa, Ontario, Canada October 25, 2023.
REUTERS/Patrick Doyle/File Photo Acquire Licensing RightsNov 3 (Reuters) - The Bank of Canada has urged banks to reconsider offering variable rate mortgages with fixed payments, concerned about the number of borrowers faced with negative amortization of their loans.
“I think you’ll see the industry reflect on how much they want to offer that product,” she addedMany variable rate mortgages in Canada require borrowers to make regular payments in fixed amounts.
You don’t want a big portfolio of negative amortizing mortgages," Rogers said.
Money markets see little chance of further tightening by the BoC and have moved to price in a rate cut by June.
Persons:
Bank of Canada Carolyn Rogers, Patrick Doyle, ”, Carolyn Rogers, “, Rogers, Fergal Smith, Gursimran Kaur, Chris Reese, Leslie Adler
Organizations:
Bank of Canada, REUTERS, Bloomberg News, BoC, Thomson
Locations:
Ottawa , Ontario, Canada, Toronto, Bengaluru