CIBC CEO expects flat to low single digit mortgage growth this year

The chief executive of Canadian Imperial Bank of Commerce (CIBC) says he expects overall mortgage growth in the country to be flat or in the low-single digits for the “foreseeable future.”

CIBC CEO Victor Dodig predicts slow mortgage growth in the year to come, though macroeconomic factors and global instability could lead to negative growth. Photo by Mpainc via Wikimedia Commons.
CIBC CEO Victor Dodig predicts slow mortgage growth in the year to come (and  further ahead), though unpredictable macroeconomic factors and global instability could feasibly lead to negative growth. Photo by Mpainc via Wikimedia Commons.

Victor Dodig says the potential for mortgage growth to turn negative will hinge on whether the Canadian housing market takes a negative turn, driven by other macroeconomic factors.

The CIBC chief’s comments at the RBC Capital Markets Banking CEO conference today come after the Canadian Real Estate Association said national home sales are projected to fall to a near-decade low this year.

CREA last month said rising interest rates and strict mortgage stress-test rules continue to weigh on homebuyer sentiment.

Toronto-Dominion Bank chief executive Bharat Masrani told the conference today that he expects mortgage growth in the mid-single digits for 2019.

Scotiabank’s CEO Brian Porter says that mortgage activity in the first couple months has been “quite strong,” but it remains to be seen what will happen during the crucial spring real estate season.

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