While those mortgage renewals will certainly act as a brake on the economy as a whole, we made the point as far back as almost a year ago that 2025’s mortgage renewal wave would be manageable as long as (1) the Bank of Canada was cutting rates and (2) the job market doesn’t soften too much. That first condition has clearly been met, but we are more concerned about the second as a slew of labor market data continues to weaken.

Click here for the full report; RBC Proof Point.