Jumbo mortgages Definition
A jumbo mortgage is a residential property mortgage which is at high risk of default when drawn down. This means that before any personal economic shocks, such as unemployment, death, disability, divorce or the arrival of babies, the sum borrowed compared to the ability to repay is very large by historical measures.
Countries that use the Euro, having ceded control of interest rates to the ECB, have a growing number of jumbo mortgages.