A ‘for sale’ sign is displayed outside a home in Toronto on Dec. 13, 2021. Carlos Osorio/Reuters
Nearly 10 percent of Toronto-area mortgage holders will struggle to refinance or renew with a different lender next year if home prices stay at their current low levels, the Bank of Canada says.
This year’s financial stability report from the central bank projects that 9 percent of borrowers in the Greater Toronto Area (GTA) and 4 percent nationally will not meet the qualifications to refinance their loans in 2027 because their home values have declined significantly since the inception of their mortgage, restricting their access to equity.
