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Canada’s Bank of Montreal has changed some terms of its mortgage process for steel and aluminum business owners, a memo sent to its brokers shows, as US tariffs stoke uncertainties in the industry.
The lender said in the memo this week that borrowers’ total debt service ratio – the percentage of monthly household income that covers housing costs and other debts – will be reduced to 42% from 44%, meaning the borrower will have more room to manage their housing budget and a smaller mortgage.
BMO also added the steel and aluminum sector to its list of industries that are more prone to risk.
“With newly announced tariffs between Canada and the United States, and consideration to the turbulent economic landscape, BMO BrokerEdge has reviewed its risk appetite for tariff-impacted industries,” the memo said.
“As a result, we have revised our temporary lending criteria for…
