Leah Zlatkin interviewed by the Toronto Star: “‘Forever mortgage’ warning. Canada’s financial watchdog cautions banks over use of fixed-payment variable loans”

The biggest concern with fixed-payment variable rate mortgages is when it comes time to renew, the borrower will need to return to the contractual amortization period, said Leah Zlatkin, COO of Mortgage Outlet and licensed mortgage broker, which will result in payment shock as monthly payments often spike.

Some homeowners, she said, have loan-to-value ratios of 100 per cent, meaning they have no equity in their house and pose the biggest risk to default.