The Value of Mortgage Choice: Payment Structure and Contract Length Staff working paper 2026-2 Michael Boutros, Nuno Clara, Katya Kartashova We study household mortgage choice in a model with three mortgage contracts that differ in their payment structures: fixed-rate fixed-payment, variable-rate variable-payment, and a hybrid variable-rate fixed-payment mortgage where interest rate changes affect principal repayment rather than payment size. We calibrate the model to match mortgage choice patterns in Canada, where all these options are offered with short terms. We demonstrate that restricting contract choice or mandating long terms, as in the U.S. system, can lead to substantial welfare losses by limiting risk management strategies and increasing mortgage pricing ex-ante. Content Type(s): Staff research, Staff working papers Research Theme(s): Financial system, Financial institutions and intermediation, Household and business credit
March 2, 2026 Speech: Sharon Kozicki, Deputy Governor Norges Bank, Oslo Content Type(s): Upcoming events
March 2, 2026 CFEC Meeting (March 2, 2026) Content Type(s): Meetings Source(s): Canadian Foreign Exchange Committee
March 2, 2026 Speech by Sharon Kozicki, Deputy Governor of the Bank of Canada On Monday, March 2, 2026, Sharon Kozicki, Deputy Governor of the Bank of Canada, will speak at the Norges Bank Mandate Conference. Content Type(s): Press, Media advisories
March 2, 2026 Canada’s monetary policy framework in a world of supply-driven trade-offs Remarks Sharon Kozicki Norges Bank Monetary Policy Mandate Conference Oslo, Norway Deputy Governor Sharon Kozicki discusses the challenges of setting monetary policy in a world where supply-side developments are important drivers of inflation. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Monetary policy, Economic models, Economy/Economic growth, Inflation, Inflation targeting framework
March 2, 2026 Monetary policy in a turbulent world Speech summary Sharon Kozicki Norges Bank Monetary Policy Mandate Conference Oslo, Norway Deputy Governor Sharon Kozicki talks about setting monetary policy when supply shocks have more influence on inflation. Content Type(s): Press, Speeches and appearances, Speech summaries Subject(s): Monetary policy, Economic models, Economy/Economic growth, Inflation, Inflation targeting framework
February 27, 2026 Bank of Canada issues revised compliance order to XTM Inc. Media Relations Ottawa, Ontario The Bank of Canada today issued a revised temporary order to XTM Inc. (XTM). The Bank has authorized XTM to recommence retail payment activities under the supervision of the Monitor appointed today by the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act, and subject to terms and conditions set out in the Bank's revised order. Content Type(s): Press, Press releases Subject(s): Retail payments supervision
What typically happens before households fall behind on mortgage payments Sparks at Bank article Laura Zhao, Jia Qi Xiao Canadians usually pay their mortgages on time. But some fall behind on mortgage payments. Before they do, homeowners often increase their use of credit cards and lines of credit, and then fall behind on those payments. Content Type(s): Staff research, Sparks at Bank article Research Theme(s): Financial system, Financial stability and systemic risk, Household and business credit
Consumers’ Path to Mortgage Delinquency Staff analytical paper 2026-3 Laura Zhao, Jia Qi Xiao, Aidan Witts Analyzing TransUnion data from 2015–2024, this study identifies a systematic timeline of distress where rising credit utilization and non-mortgage arrears precede mortgage delinquency by up to two years. This deterioration intensifies in the final six months, providing a robust suite of high-frequency indicators for monitoring emerging household stress. Content Type(s): Staff research, Staff analytical paper JEL Code(s): D, D1, D14, G, G2, G21, G5, G51 Research Theme(s): Financial system, Financial system regulation and oversight, Household and business credit