High credit scores reduce risk in hottest markets says CIBC
Steve Randall
Mortgage Broker News
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.
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