Mortgage holders to cope with loan renewals

Several bank CEOs suggested that customers can expect to pay somewhere in the range of C$5,000 (US$3,700) more per year on average. — Bloomberg

MONTREAL: With about 14% of Canadian mortgage holders set to renew their loans this year, the chief executive officers (CEOs) of the country’s big banks say they’re confident the resulting interest-rate hikes won’t crush customers or lead to a wave of defaults.

Several bank CEOs suggested that customers can expect to pay somewhere in the range of C$5,000 (US$3,700) more per year on average, but said Canadians are sitting on savings, earning higher wages and ready to slash their discretionary spending to avoid giving up their homes.