Negative Equity

A situation where your mortgage balance is greater than the value of your home.

This can occur when you make a small down payment (e.g.  5%) and home prices drop considerably.

Negative equity is problematic for people who can’t meet their mortgage payments.  That’s because it eliminates the option of selling ones home to repay the mortgage in full.

More Stories
Average home prices rise in March 2021, says CREA
Average Home Price Hits a Record $716,828. Is Another Policy Response Coming?
Copy link