High credit scores reduce risk in hottest markets: CIBC

  8/26/2016 |   SHARE
Posted in Real Estate Market by Sandra Karas| Back to Main Blog Page

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.

Mortgage Consumers, Mortgages & Real Estate, Real Estate Market, Toronto, Vancouver