Bank of Canada warns of major rise in mortgage arrears

canada

Canada’s level of mortgage payment arrears could rise in 2021 to nearly double that seen during the global financial crisis, the Bank of Canada warned.

Mortgage arrears could roughly triple from their current level of an estimated 0.27%, the BoC’s Financial System Review said. They could reach just under 0.8% in the third quarter of 2021 when banks’ temporary payment deferral plans expire. 

“This peak is close to double the peak arrears rate in 2009,” the Bank of Canada said. “The

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