Trigger risk fades: Of the 1 in 3 mortgages with floating rates, about 75-80% have fixed payments, and about "three-quarters" of fixed-payment variables have hit their trigger rate, estimates Desjardins Economics. The BoC's pause has eased trigger rate concerns, but if rates do resume higher "a number of financial institutions have disclosed that they will allow the principal owed to grow to 105% of the original loan value before requiring any additional payments," Desjardins said Monday. "That’s a high bar to exceed," it added, and leaving the policy rate on hold through 2024 would not see any mortgages breach that threshold."
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