Pursuits
Will Home Capital Dent Canada’s ‘Boring-but-Stable’ Reputation?
- Brokers worry it may trigger a slump in the housing market
- Finance Minister Morneau’s monitoring events, as are investors
Home Capital Sale May Be Next After Pension Fund Loan
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As Home Capital Group Inc. spiraled downward last week, a group of Canadian real estate brokers relaxing in Mexico brooded over whether the mortgage lender’s woes would seep into the housing market and trigger the kind of crisis the country averted in 2008.
“Home Capital was on everybody’s lips," Dominion Lending Centres’s Jason Georgopoulos said about the industry retreat in Los Cabos, Mexico. In between margaritas and rounds of golf, he saw Home Capital’s stock plunge and its debt rating cut to junk from investment grade. "People were surprised because a lot of them have had a very positive relationship with the company over the last 30 years.”