Canada’s Banking Watchdog Warns of Mortgage Renewal Risks and Payment Shocks

Canada’s banking watchdog, the Office of the Superintendent of Financial Institutions (OSFI), has issued a warning regarding the impending financial risks associated with mortgage renewals and real estate lending. The regulator highlighted that many homeowners who secured mortgages when interest rates were near zero will face significant payment shocks by 2026. Chief bank inspector Peter Routledge emphasized that billions in variable rate, fixed payment home loans are particularly concerning. OSFI has flagged these mortgage renewals and interest rate shocks as a top financial risk, underscoring the potential economic impact on the Canadian housing market.