All types of mortgages now being renewed are being renewed at higher rates than the previous term. All adjustments are negative unless the mortgagee decides on a longer amortization to minimize the cash flow pinch.
Every six months, 6% to 7% of all mortgages are renewed. This distribution is pretty consistent across Canada.
BC has the highest proportion of variable rate mortgages, which is pretty scary. The payments on variable rate mortgages do not reset to a higher level when the interest rate increases and so many variable rate mortgage holders end up with a negative amortization (their payment is smaller than the interest charged) during a rising rate environment like the past couple years.
40% of mortgage holders intend to renew for 4-5 years. I would think this is pretty typical across Canada.
Interesting and lastly, check this article out in the National Post.
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