FORCED SALES IN THE NEAR FUTURE?
Thursday Nov 16th, 2023
The risk of heavily-indebted homeowners being forced to sell their homes is increasing in Canada, according to independent economic research business Capital Economics, which emphasized concern for mortgages being refinanced with non-bank lenders.
With homebuyers needing default insurance in Canada when their loan-to-value ratio is more than 80%, this often meant that their finances have already been stretched in order to purchase the home.
Brown stated that the rise in insured mortgages being refinanced with alternative lenders implied that many borrowers could not pass the stress tests with their original providers. It may force them to sell!