Some of the payment increases borrowers are seeing on renewal are a Nightmare on Mortgage Street—especially for folks without offsetting income gains.
But some of these predictions of renewal payment shock are getting a little dramatic.
The latest report to spawn worrisome headlines comes from RBC, who warns us to expect a "weighted average payment shock of 32-33%" for 2024 and 2025 mortgage renewals and "48%" for 2026. The barrage of similar studies this year has almost been desensitizing.
But is it time to start sweating bullets?
We'll grab a calculator and crunch some numbers before plunging into full-blown panic mode.