Variable-rate mortgages with fixed payments: Examining trigger rates

Stephen Murchison and Maria teNyenhuis

No 2022-19, Staff Analytical Notes from Bank of Canada

Abstract: We estimate the share of variable-rate mortgages with fixed payments that reached the so-called trigger rate—the interest rate at which mortgage payments no longer cover the principal. Amid rising interest rates, this share was close to 50% at the end of October 2022 and could potentially reach 65% in 2023.

Keywords: Credit and credit aggregates; Financial institutions; Interest rates; Recent economic and financial developments (search for similar items in EconPapers)
JEL-codes: D1 E4 E5 G2 G21 (search for similar items in EconPapers)
Date: 2022-11
New Economics Papers: this item is included in nep-ban and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:bca:bocsan:22-19

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