11:09:09 EST Wed 01 Feb 2023
Enter Symbol
or Name

Login ID:
Canadian Imperial Bank of Commerce (CIBC)
Symbol CM
Shares Issued 906,003,982
Close 2022-11-22 C$ 64.29
Recent Sedar Documents

Globe says CIBC, rivals hear BOC warn on growing stress

2022-11-23 07:10 ET - In the News

Also In the News (C-BMO) Bank of Montreal
Also In the News (C-BNS) Bank of Nova Scotia
Also In the News (C-NA) National Bank of Canada
Also In the News (C-RY) Royal Bank of Canada
Also In the News (C-TD) Toronto-Dominion Bank

The Globe and Mail reports in its Wednesday edition that Bank of Canada senior deputy governor Carolyn Rogers expects Canada's financial system to weather a period of heightened stress, but warns recent homebuyers could experience a "painful" squeeze as interest rates continue to rise. The Globe's Mark Rendell and Rachelle Younglai write that on Tuesday Ms. Rogers said long-standing vulnerabilities in Canada's housing market worsened through the COVID-19 pandemic as home prices soared and buyers increasingly relied on variable-rate mortgages. Ms. Rogers said now that interest rates are rising and home prices are falling, many of these homebuyers are experiencing a nasty adjustment. The most common variable-rate product has fixed monthly payments. With every interest rate hike, more of the borrower's monthly payment goes toward interest. However, when the monthly payment no longer covers any principal, the borrower hits what is known as a trigger rate, and their monthly payment rises. In some cases, the lender allows the borrower to shift the interest onto the principal, which increases the size of the mortgage. Fifty per cent of these variable-rate mortgage holders have already reached their trigger rate.

© 2023 Canjex Publishing Ltd. All rights reserved.