Warn Of Home Loan ‘Trigger’
Homeowners with billions in mortgages face a “trigger point” on default, says a federal memo. Peter Routledge, Superintendent of Financial Institutions, has repeatedly warned Parliament to brace for fallout from variable rate, fixed payment home loans.

“The large number of borrowers that will experience this payment shock is a concern,” said the November 2 staff memo to Routledge. “We estimate that mortgages such as these total $369 billion outstanding in a mortgage market of $2.1 trillion.”

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