1000 new homes at risk as developer files for bankruptcy restructuring

Toronto-based developer Urbancorp has filed for bankruptcy restructuring amid crippling debts. The firm said that it hoped a solution could be found to enable it to complete 1,000 homes that it is currently building in the city, which are due to be completed within the next two years.

Homes warranty company Tarion recently announced it was considering revoking coverage for 17 Urbancorp projects on concerns over its finances and customer service; these issues have been challenged by the developer.

The Globe and Mail reports that Urbancorp has told its Israeli investors that there would be a $15 million loss for the first quarter of 2016.

In a statement regarding the bankruptcy restructuring, Urbancorp’s founder and CEO Alan Saskin said: “This will allow us to reduce debt in an efficient manner while continuing to focus on our core business.”

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

Market update:

Investment Hot Spots:
Lakeview Heights, Horsefly, Walford, Eastville, Blues Mills

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Poll

Have your investment plans changed for 2017?