National Bank CEO warns of harsh 'new reality' for borrowers
BNN Bloomberg
National Bank of Canada is better positioned than many of its larger rivals to navigate a downturn that’s poised to hit banks’ balance sheets and customers, according to Chief Executive Officer Laurent Ferreira.
Many of the firm’s clients with fixed-rate mortgages — accounting for about two-thirds of its home-loan book — will soon face a harsh “new reality,” Ferreira said Thursday in an interview.
About 85 per cent will need to renew those loans — which haven’t yet been affected by higher interest rates — in 2024 through 2026, said Ferreira, who became CEO two years ago.
Canada’s sixth-biggest bank is trying to prepare them for the shock, he said, noting that clients with variable-rate loans that increase along with interest rates have already seen average monthly payments increase by $600 a month in Quebec and $1,200 in Ontario.
