Canadian Housing Crash Could Cost Lenders 12 Billion

Moody’s Investors Service has issued a report predicting that if there was a US style housing crash in Canada, lenders could weather the storm, but it would cost upwards of 12 billion dollars.

The report suggests that Canada’s biggest banks would see losses of roughly $11.7 billion if the market experienced a 25% price decline.

The report titled:  Banks – Canada: Major Banks and Mortgage Insurers Would Weather US-Type Mortgage Losses  was released today as part of Moody’s Sector In-depth series.

The report has generated substantial media coverage in Canada:

The Vancouver Sun
CBC
The Globe and Mail
Business News Network