The aggressive pace of interest-rate hikes has caused mortgage books at Canada's biggest banks to slow, with would-be homebuyers sitting on the sidelines. This has led to longer amortization periods, a rise in impairments, and a decrease in loan growth. Bank of Nova Scotia has been deliberately slowing mortgage growth in order to shift the use of capital and improve their net interest margin. Other banks have taken different approaches, such as reaching out to borrowers who have hit their trigger rates and proposing solutions such as lump-sum payments, fixed-rate mortgage options, or extensions.
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