The Globe and Mail reports in its Friday edition that the Bank of Canada says homeowners who are renewing their mortgages in the coming years will face significant increases in their monthly payments. The Globe's Mark Rendell and Rachelle Younglai write that for those with a variable rate mortgage, the median monthly payment is expected to jump by more than 60 per cent. Although there has been a sharp rise in interest rates, many homeowners have managed to weather the impact so far. However, the BOC's annual Financial Stability Report highlights that household and business debt servicing has become a major risk to the country's financial system. Despite mortgage defaults remaining below 0.5 per cent across Canada, the report warns that the ability to service debt has become a major threat to financial stability. Governor Tiff Macklem said about the report: "If more Canadians lose their jobs, the unemployment rate goes up, all of a sudden that stress, that vulnerability is really at risk of crystallizing. More households won't be in a position to pay that mortgage, particularly given the larger reset. So it is a vulnerability. And the point here is households and banks need to get ahead of that. We know what's coming."