Walking away from a mortgage on an underwater property was rife in Alberta in the 1980’s and conditions in the province are starting to create a rise in incidents of ‘jingle mail’, sending the keys back to the mortgage lender. Alberta has widely available loans which allow homeowners to walk away from their mortgage with no recourse, assuming they have made a downpayment of at least 20 per cent. Real Estate Investment Network analyst Don Campbell told the CBC: “We’re slowly starting to see it in Grande Prairie and Fort Mac.” Areas where prices have dropped 20 per cent or more pose a risk to lenders and the federal finance department is watching the issue closely.
Steve Randall has more than three decades of media experience encompassing online, newspapers, magazines, radio, and podcasts. He focuses on insights and news for professionals in finance, real estate, and legal services. Steve writes for multiple Key Media titles in Canada, United States, Australia, and New Zealand.
