Latest Update on Residential Mortgage Amortization of 🍁 Canada's 7 Main Lenders as of July 31, 2024:
The percentage of problematic mortgages has decreased since last quarter; however, the proportion of mortgages with negative amortization remains significant at over 4%.
Total residential mortgages: $1.6T across 7 lenders (RBC, TD, Scotiabank, BMO, CIBC, National Bank, and Desjardins), accounting for ~80% of all mortgages in Canada.
Remaining Amortization Schedule:
- 36.8% ($596B) > 25-year (vs. 37.7% in Q2)
- 11.4% ($184B) > 35-year (vs. 13.4% in Q2)
- Over 4% ($65.2B+) are non-amortizing (vs. 5.7% in Q2)
Non-amortizing or negative amortization means payments are less than the mortgage interest. ⚠
Risk Evaluation Based on Amortization:
- Least Risky: $NA.TO
- Most Risky: $CM
Note: According to a recent Bank of Canada report, 49.4% of newly issued mortgages have amortizations longer than 25 years.
* These statistics are derived from the Q3 2024 reports (ending July 31, 2024) of the six major banks, as well as the Q2 2024 report of Desjardins (June 30, 2024).
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