“The point at which none of the payment goes towards principal is called the trigger rate – and the vast majority of pandemic-era borrowers have hit it.

“This is the case for a full eight out of 10 variable borrowers who took their mortgages out between 2020 and 2022, according to an analysis note from National Bank economists Stefane Marion & Daren King.”
As more variable-rate borrowers on fixed payment schedules hit their trigger rate, lenders are allowing for longer amortizations, exceeding 30 or even 40 years. But do these extra-long mortgages pose added risk to banks and borrowers alike? The banking regulators certainly don't like it.

I break it down on the Ratehub.ca blog:
https://lnkd.in/dPWxcSYi