Those households are facing an imminent rate shock — although the damage won’t be as bad as it could have been. “While mortgage rates today are certainly higher than they were at origination, the Bank of Canada’s easing cycle has proven very timely,” the report said. “This buffer will serve to limit delinquency and forced selling which would otherwise exacerbate the real estate correction and further undercut the economy,” it said. Additionally, household financial assets have grown strongly over the past five years too, it noted. “Not only does this provide a cushion for future mortgage payments, but also offers flexibility to reduce outstanding balances at renewal,” it said.