Q3 2018 Bank Earnings
The new B-20 regulations and higher interest rates so far appear to be having little effect on mortgage growth, with RBC reporting that customers are “self-adjusting” to the new landscape.
One big gift delivered to the banks courtesy of the B-20 guidelines is turning out to be higher renewal rates, since the new rules make it more difficult for existing homeowners to qualify at a new lender. Both RBC and CIBC report renewal rates in the 90-94% range.
As we do every quarter, we’ve picked through the Big Banks’ quarterly earnings reports, presentations and conference calls, and compiled all the mortgage notables right here. Key tidbits are highlighted in blue.