A new report suggests that British Columbia could see a mass default on mortgages if there was a widespread crash in house prices.
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.
