Europe's Energy Crisis & Canadian Banks
The Canadian Investor
00:00
Canadian Mortgage Housing Corporation
A down turn in the housing market, which we're seeing right now, could really hurt c i b c compared to other canadian banks. The reason why variable mortgages are dangerous for banks is that as interest rates rise, actually rise quickly, mortgage owners will start hitting their trigger rates. So trigger rates means that your mortgage payment is now all interest, and the payment has to increase so that you're actually paying capital.
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