Canadian Regulator Warns of Real Estate and Mortgage Risks

Canada's banking regulator, OSFI, identifies real estate-secured lending and mortgages as top financial system risks due to higher interest rates. Homeowners renewing mortgages may face payment shocks, increasing the risk of arrears or defaults. Other risks include wholesale credit, funding and liquidity issues, and geopolitical conflicts, which could disrupt markets and destabilize institutions. Political tensions may also make Canadian institutions targets for attacks.