I'll be surprised if banks do any more than postpone some payments. I expect interest will continue to accrue and 90% of mortgages will continue unaffected.
I expect a small number of home rentals will fail to pay but this on its own could hardly result in more than a small percentage of loan defaults. What's the total cost of any residential lease for 6 months? How many owners are that tightly leveraged?
But beyond that I expect a lot of millennials will be heading back to mum and dad so quality tenants "should" be in high demand. With immigration presumably on hold for the moment and most people losing either income or asset value I'd expect some deleveraging. If I had a quality tenant on hard times I'd be trying to work something out to keep them. If the government is going to step in here to help property owners then I think they've completely lost the plot.
I personally wouldn't expect property to be a great investment for some time. Apartments even less so.
Less certain about how big a hit the banks will take though. All in my humble opinion.
WBC Price at posting:
$15.51 Sentiment: Hold Disclosure: Not Held
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