Why Canadian Housing Market is Different than US?
First bigger down payments in mortgages, what does that cause? Let’s say you did not put down payments, and borrow a lot for the house, then if the price of loan goes down, puffff…you just walk away without losing any money but the house that you intended to buy.
Latter, difference between recourse and non-recourse mortgage , in US if you default on mortgage they take the house back and if the house worths less, sorry that is all you had. But in Canada if you default on your payments, they don’t only take your house but also any other assets you may have
For those two reasons Canada did not have the problem that US had.