September 15, 2020, by Kevin Orland

Three of Canada’s six biggest banks said they expect most borrowers who took advantage of pandemic-related deferral programs to resume payments, countering fears of a sharp increase in impaired loans.

Chief Executive Officer Brian Porter said in the statement that Scotiabank now has $39 billion (US$30 billion) of deferral exposure, down from $41.5 billion as of July 31, and expects the “vast majority” of its remaining balances to expire this quarter,

Bank of Montreal Chief Financial Officer Thomas Flynn said he doesn’t expect a “radically different outcome” for the loans that are still deferred.

Royal Bank of Canada CFO Rod Bolger said that of the mortgages that his bank has on deferral, the average loan-to-value ratio is in the mid-50s and borrowers have average FICO scores higher than 750.

Most borrowers who deferred mortgages will resume payments, Canadian banks say

What does this mean?

This article is fascinating, even enlightening, but you may have no idea what to do with the information it  provides.

It’s dangerous to load up on knowledge and move without the practical wisdom to act.

Every week, our coaches post real estate insights and stories from the streets. They unpack real deals, breaking down the numbers, and highlight trends that their clients are making money off of.

Their wisdom is freely available to you right here. 

Sign up for the iWIN Real Estate Newsletter now so you never miss the practical wisdom we are already sending to thousands of investors in Ontario.