{"id":17482,"date":"2016-02-08T12:49:57","date_gmt":"2016-02-08T17:49:57","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17482"},"modified":"2016-02-08T12:49:57","modified_gmt":"2016-02-08T17:49:57","slug":"jingle-mail-rears-its-ugly-head-in-alberta-again","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17482","title":{"rendered":"Jingle mail rears its ugly head in Alberta again"},"content":{"rendered":"
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Jingle mail rears its ugly head in Alberta again<\/a><\/h3>\n<\/div>\n

Federal government worried about Albertans making strategic defaults on their mortgages<\/strong><\/p>\n

\"This<\/p>\n<\/div>\n<\/div>\n

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This tiny hamlet south of Calgary has 27 homes for sale for more than $1 million. (Colin Hall\/CBC)<\/p>\n<\/div>\n<\/div>\n

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One of the big bads from the\u00a01980s is starting to emerge\u00a0again in Alberta.<\/div>\n<\/div>\n<\/div>\n
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Jingle mail \u2014 the act of walking away from an underwater mortgage by mailing your keys back to the bank \u2014 is a peculiarity of the Alberta residential market and an act of desperation. However, a\u00a0combination of high debt and lost jobs make\u00a0it an\u00a0option in a province\u00a0going through a significant\u00a0economic reckoning.<\/p>\n

It’s enough of a concern that the federal government is watching the Alberta market closely. Jingle mail, or strategic defaults, weaken the housing market and increase loan losses among\u00a0Canada’s banks.<\/p>\n

‘People saying that we can’t make a go of it and mail the keys to the bank.’<\/span>– Don Campbell, Real Estate Investment Network<\/cite><\/p><\/blockquote>\n

“We’re slowly starting to see it in\u00a0Grand Prairie\u00a0and Fort Mac,” said Don Campbell, senior analyst with the Real Estate Investment Network.<\/p>\n

“People\u00a0saying that we can’t make a go of it and mail the keys to the bank.\u00a0In the big cities, not so much because the average sale prices haven’t really dropped much, we haven’t seen the pain yet. But Calgary is getting pretty tight.”<\/p>\n

Bruce Alger, an insolvency trustee at Grant Thornton in Calgary, said he is dealing with one such case and has heard of more.<\/p>\n

“It’s when you see high-end home prices drop 20 per cent below the peak,” said Alger. “I think there are\u00a0people considering walking away\u00a0and I’ve talked to one or two myself.”<\/p>\n

Why Alberta is different<\/strong><\/p>\n

Alberta is the only Canadian province to broadly offer non-recourse residential mortgages. Those\u00a0loans with at least a 20 per cent down payment and thus\u00a0are not insured by the Canada Mortgage and Housing Corporation (CMHC).<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Jingle mail rears its ugly head in Alberta again Federal government worried about Albertans making strategic defaults on their mortgages This tiny hamlet south of Calgary has 27 homes for sale for more than $1 million. (Colin Hall\/CBC) One of the big bads from the\u00a01980s is starting to emerge\u00a0again in Alberta. Jingle mail \u2014 the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1082,103,3341,3000,3342,5428,2339,668,12260],"class_list":["post-17482","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alberta","tag-canada","tag-canada-mortgage-and-housing-corporation","tag-cbc-news","tag-cmhc","tag-jingle-mail","tag-mortgages","tag-real-estate","tag-tracy-johnson"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17482"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17482\/revisions"}],"predecessor-version":[{"id":17483,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17482\/revisions\/17483"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}