Posthaste: How higher savings rate might not save Canadians from the mortgage cliff

Canadians' rising savings rate, now at 7.2%, may not adequately shield homeowners from upcoming mortgage renewals, according to a CIBC report. The true excess savings could be between 5% and 13% of household income, rather than the 25% suggested by national accounts. Most savings are held by homeowners without mortgages, while those with significant mortgage debt have seen a decline in savings. This situation poses risks to the economy, potentially prompting the Bank of Canada to lower interest rates further.