•
Unlike in the U.S., underwriting standards for qualifying
mortgage borrowers in Canada have been maintained at prudent levels resulting in
mortgage borrowers here being much more creditworthy; • Canadian
mortgage lenders never offered low initial «teaser» rate
mortgages that led to most of the difficulties for
mortgage borrowers in the U.S.; • Most
mortgages in Canada are held by their original lender, not packaged and sold to third parties as is
typical in the U.S., and consequently, Canadian
mortgage lenders have a vested interest in ensuring that their
mortgage borrowers are creditworthy and not likely to default; • Only 0.3 % of Canadian
mortgages are in arrears versus 4.5 % in the U.S. and what even before the start of the U.S. housing meltdown two years ago was 2 %; • Canadians tend to pay down their
mortgage faster than in the U.S. where
mortgage interest is deductible from taxes, which encourages U.S. homeowners to take equity out of their homes to finance other spending, a difference that is reflected in the fact that in Canada
mortgage debt accounts for just over 30 % of the value of homes, compared with 55 % in the U.S.