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“It generally means … there’s a light at end the tunnel,” he said. “But if it results in significant movement in mortgage rates,” it puts pressure on mortgage growth while raising funding costs.
With little demand for loans outside mortgages, banks have deployed their ballooning deposits into low-yielding short-term securities, which contributed to a decline in margins to 1.56 per cent, the lowest in about two decades.
Mortgage growth
Residential mortgage balances at Canada’s biggest banks Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada grew 8.3 per cent in the three months through January, versus a 2.4 per cent increase in commercial lending.
Higher mortgage rates bring cheer to Canadian banks, but rapid rise could end housing party
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Higher mortgage rates bring cheer to Canadian banks, but rapid rise could end housing party
reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.