Risk Lowered In Blazing Market Due To High Credit Scores

CIBC has high hopes that their mortgage record will not be a major risk to both of the hottest markets at this moment. During a conference call that took place after the release of their third-quarter earnings, the creditor’s main risk officer Laura Dottori-Attanasio said that the mortgage clients in both Vancouver and Toronto normally have credit scores that are way more than the average nationwide ones, while the most severe rates that are carried over are usually way lower than the bank’s portfolio in general.

Through the multi-steps done before obtaining a loan, the loan to values are likewise more inferior. The chief risk officer for CIBC, Dottori-Attanasio also said that, even if there happens to be a 30 percent decline in the price of homes while the rate of unemployment rises by 11 percent, CIBC will still have to go through a major loss, which is less than $100,000.

She mentioned that, rather than for more attention and concern to be focused on mortgages, it should be channeled on the loan market that is not secured, as it can pose a huge risk and cause danger on the market if care is not taken along the line.