Last Updated on October 24, 2023 by Steve Randall
CIBC is confident that its mortgage book is not a huge risk even in the two hottest markets.
In a conference call following the release of its third quarter earnings, the lender’s chief risk officer Laura Dottori-Attanasio said that in Toronto and Vancouver its mortgage customers generally have higher-than-national-average credit scores while serious arrear rates are lower than the bank’s overall portfolio. At-origination loan to values are also lower.
Dottori-Attanasio said that even if there was a 30 per cent drop in home prices and unemployment rose by 11 per cent, CIBC would face losses of less than $100,000. She said that rather than being concerned about mortgages, the unsecured loan market poses more risk.
Steve Randall has more than three decades of media experience encompassing online, newspapers, magazines, radio, and podcasts. He focuses on insights and news for professionals in finance, real estate, and legal services. Steve writes for multiple Key Media titles in Canada, United States, Australia, and New Zealand.
