Report warns of mass mortgage default

Report warns of mass mortgage default

Report warns of mass mortgage default A new report suggests that British Columbia could see a mass default on mortgages if there was a widespread crash in house prices. The BC Financial Institutions Commission report was sent to credit unions last week and warns that "Default risk is of particular concern given the continuously climbing housing price in the Greater Vancouver area.” The report highlights that it is not responding to a specific concern about the current market and it does not aim to predict what may happen to the housing sector, but with a growing number of people having arranged loans through credit unions it is flagging up the risk to those lenders. Read the full report.
 
7 Comments
  • David 2015-03-13 9:12:52 AM
    Here's my prediction. We will see a mass default on mortgages everywhere in this country if there's a widespread crash in housing prices. Not rocket science.
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  • Anthony C. 2015-03-13 12:19:39 PM
    @Jamie Henry...

    Be honest...did it hurt just a little to have written and published what is arguably one of the most evidently unnecessary articles which I've yet to have read in MBN...way to go dude!

    I got one for you..."Canadian Housing Market could see a widespread default on mortgages were there a nationwide crash in home prices..."

    Better luck on the next one...
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  • Rick 2015-03-13 12:57:49 PM
    Agreed Dave - KMI is getting overly creative in writing headlines.

    Another set of perspectives on BC..... 1. Several global agencies including the U.N. report Canada as being one of the best nations on the planet to live in. That attracts worldwide attention. 2. Consider the national weather reports for the past 3 months and guess at where immigrants (from outside and within Canada) are likely to want to live. 3. Vancouver is hemmed in by: an ocean on the West side, Mountains on the North and East, and the U.S. border on the South. 4. Finally, With lots of external money wanting to come to BC, the supply vs demand pricing Law indicates that BC housing prices are a long way from any major corrections.
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