The sharp rise in interest rates over the past 19 months has been painful for consumers, but unless rates drop significantly, nearly two-thirds of Canadian mortgage holders will still face a “payment shock” over the next three years.

Between 2024 and 2026, an estimated $900 billion worth of Canadian mortgages – about 60 per cent of all outstanding mortgages at chartered banks – are due for renewal and could face a sharp increase in payments, according to a report released this week by Darko Mihelic. Is. , an analyst who covers the banking sector for RBC Capital Markets. Those payment increases range from a weighted average of 32 percent next year to 48 percent in 2026.

The report focuses on how the payments shock will impact the retail operations of Canada’s major banks, but the economic fallout if the current interest rate environment persists is clear.

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