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BMO: No issues with mortgage renewals at this time

The Bank of Montreal (BMO) is the latest of Canada’s big banks to confirm most of its mortgage clients haven’t yet experienced challenges with their renewals.

The comments came as part of the bank’s fourth-quarter earnings results, in which it reported a 12% increase in residential mortgage volumes.

Chief Risk Officer Piyush Agrawal said the bank’s delinquency rates remain low at this time, and that just 12% of its portfolio will come up for renewal in the next 12 months.

“We are proactively reaching out to customers who we think are most likely to have future challenges at renewal, Agrawal said on the company’s earnings call. “We have had a positive customer response to this outreach, and there have not been any observable increase in delinquencies at mortgage renewals.”

He added that he’s also reviewed the bank’s underwriting standards personally to confirm the “high quality of the portfolio overall, the robust structures and underwriting practices, as well as the strong risk management capabilities and discipline.”

“This sound foundation will serve us in good stead as consumers and businesses adapt to the impact of high inflation and interest rate increases, while the macroeconomic environment and geopolitical situation remain uncertain,” he added.

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