Maria teNyenhuis - Latest

• Impacts of interest rate hikes on the consumption of households with a mortgage

  Staff Analytical Note 2024-14 Panagiotis Bouras, Joaquín Saldain, Xing Guo, Thomas Michael Pugh, Maria teNyenhuis

  We assess how much the recent rate-hike cycle has and will affect mortgage borrowers' consumption through its impacts on mortgage payments. Our analysis provides insights into the effects of changes in monetary policy on the consumption of mortgage borrowers.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Interest rates, Monetary policy, Recent economic and financial developments JEL Code(s): D, D1, D13, E, E2, E21, G, G5

• The impact of higher interest rates on mortgage payments

  Staff Analytical Note 2023-19 Maria teNyenhuis, Adam Su

  We investigate how the increase in interest rates since early 2022 is affecting mortgage payments. By November 2023, less than half of mortgage holders had faced higher payments. Many borrowers will see a sizable increase in payments at renewal, although income growth could help mitigate the impact.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Credit and credit aggregates, Financial institutions, Interest rates, Recent economic and financial developments JEL Code(s): D, D1, E, E4, E5, G, G2, G21

• Variable-rate mortgages with fixed payments: Examining trigger rates

  Staff Analytical Note 2022-19 Stephen Murchison, Maria teNyenhuis

  We estimate the share of variable-rate mortgages with fixed payments that reached the so-called trigger rate—the interest rate at which mortgage payments no longer cover the principal. Amid rising interest rates, this share was close to 50% at the end of October 2022 and could potentially reach 65% in 2023.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Credit and credit aggregates, Financial institutions, Interest rates, Recent economic and financial developments JEL Code(s): D, D1, E, E4, E5, G, G2, G21

• Resilience of bank liquidity ratios in the presence of a central bank digital currency

  Staff Analytical Note 2022-5 Alissa Gorelova, Bena Lands, Maria teNyenhuis

  Could Canadian banks continue to meet their regulatory liquidity requirements after the introduction of a cash-like retail central bank digital currency (CBDC)? We conduct a hypothetical exercise to estimate how a CBDC could affect bank liquidity by increasing the run-off rates of transactional retail deposits under four increasingly severe scenarios.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Central bank research, Digital currencies and fintech, Econometric and statistical methods, Financial institutions, Financial stability JEL Code(s): C, E, E4, G, G2, G21, O, O3, O33

• The Impact of Recent Policy Changes on the Canadian Mortgage Market

  Staff Analytical Note 2018-35 Olga Bilyk, Maria teNyenhuis

  Recent policy changes are having a clear impact on the mortgage market. The number of new, highly indebted borrowers has fallen, and overall mortgage activity has slowed significantly.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Credit and credit aggregates, Financial institutions, Interest rates, Recent economic and financial developments JEL Code(s): D, D1, E, E4, G, G2, G21, G28

• The Characteristics of Uninsured Mortgages and their Securitization Potential

  Staff Analytical Note 2018-24 Adi Mordel, Maria teNyenhuis

  Following changes to housing finance policies that target insured mortgages, uninsured mortgage credit has been growing. This robust growth creates a larger pool of mortgages that may be suitable for private-label residential mortgage-backed securities (RMBS).

  Content Type(s): Staff research, Staff analytical notes Topic(s): Financial institutions, Financial system regulation and policies, Wholesale funding JEL Code(s): G, G2, G21, G28