by the Bank of Canada, the cost to service a variable-rate mortgage rises. At most banks, however, the borrower’s monthly payment doesn’t increase right away. Instead, the amortization period – the time it takes to pay the loan off in full – gets longer. When the loan’s term comes up for renewal, the amortization has to snap back to its original length, which means a sudden increase in monthly payments.
At RBC, BMO and CIBC, the percentage of mortgages with an amortization of more than 30 years recently doubled in a three-month span, which is one of the clearest indicators that stress is building on variable-rate mortgage holders, who are increasingly paying more interest and less principal on their loans.Old Age Security pensions are something that nearly all Canadians count on for their. The maximum monthly payout at age 65 is currently $685.