Article content

Francis, a 34-year-old welder from the mining town of Grande Cache, Alberta, says he wishes he could get out of the townhouse he bought four years ago.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or You can walk away from your mortgage (if you live in Alberta), but should you? Back to video

Compared with these two housing hot beds, Vancouver, the most expensive market in the country, and Toronto are seen as low risk even as average home prices soar past $1.4 million.





[/np_storybar]

“At the time it seemed cheaper. I didn’t want to spend money on rent. But now I think I can find something cheaper to rent,” says Francis, who asked that his last name not be used.

He bought the home for $175,000 with a five per cent downpayment but still owes $150,000 on his mortgage. He says the market for his home has collapsed in his town and a realtor just told him the best price he could expect is $75,000.

“This town is mostly about mines and now the price is down. The town is dead,” he said, frustrated about his situation. He’s also out of luck, if he wants to walk away, because his loan is backed by Canada Mortgage and Housing Corp., the Crown corporation that controls a majority of the mortgage default insurance market.