One of Canada’s largest mortgage lenders just imploded, and it may have serious consequences for Toronto real estate.

Home Capital Group, a publicly traded company that engages in non-prime (a.k.a. subprime) lending, saw its stock drop over 60% in a single day.

The reason? They’re facing a liquidity crunch, as their capital for subprime mortgages dried up very quickly.

This could be the start of a broader trend of investors derisking, and it may kill a significant segment of high-leverage buyers.