Mortgage Amortization of Canada's Big 6 Banks + Desjardins & Equitable

Update on Residential Mortgages from Canada's 8 Main Lenders*

RBC, TD, Scotiabank, BMO, CIBC, National Bank, Equitable, and Desjardins** collectively hold residential mortgages in Canada totaling $1,585 billion, which accounts for approximately 80% of the total residential mortgages in the country.

Remaining Amortization Statistics of the 8 Lenders:

• $598 billion (37.7% of them) < 25-year
• $223 billion (14.1% of them) <35-year
• At least $94 billion (5.9% of them) have negative amortization where payment is less than the mortgage interest.***

In addition to residential mortgages, these lenders also reported a total Home Equity Line of Credit (HELOC) balance of $280 billion, with up to $137 billion being non-amortizing (interest-only).

The data highlights a significant trend where many Canadians are extending their mortgage terms beyond 25 years for two main reasons:

• 1. Affordability challenges preventing full payment.
• 2. Leveraging home equity as a financial tool for additional borrowing.

* We omitted MCAN and First National from our analysis as many of their mortgages are recorded on the books of other lenders.

** The statistics are derived from the Q1 2024 reports (ending January 31, 2024) of the six major banks and Equitable, as well as the Q4 2023 report of Desjardins (December 31, 2023).

*** It's important to note that the actual figure for negative amortization mortgages could be higher, as Desjardins has not disclosed their specific data on this aspect.