Canada's big six banks were resilient while mortgage lenders in the US were hit hard by the crisis. However, the banks will now need to convert $152 billion of capital into securities, according to RBC estimates.
It could mean higher costs for those using their services, including those with mortgages.
RBC believes that switching debt to new kinds of securities will cover most of the requirement, but there will be costs that will likely be passed on to customers.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Pierreville, Saint-Benjamin, Tomstown, Tancook Island, Dutton/Dunwich
Canada’s largest banks did not need rescuing from the financial crisis, but are still facing high costs to ensure that they will be tough enough to withstand a similar event.