Canada’s banks could find themselves in crisis if a housing market crash was to happen.
A report from investment analysts Morningstar says that the likelihood of higher interest rates, falling prices and a slower market at some time in the next year or so could lead to a high level of defaults. The Royal Bank of Canada and CIBC would be hit the hardest.
Morningstar predict that there will be a correction in the market within the next five years and are suggesting that it could see property values fall by as much as 30 per cent.
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
More market watch: