I'm no expert but isn't the big difference between the US and Canada situation the interest rates and resulting foreclosures? Our interest rates are holding pretty steady right now, so even if you are on a variable rate, you should still be able to make your payments regardless of whether you're in a negative equity position or not. On the other hand, the interest rates on the subprime mortgages are going up and all of a sudden people can't afford to make their payments and are walking away from their homes. Same thing caused the bubble burst in the 80's -- sky-high interest rates meant people couldn't afford their homes anymore.
Anyone know what the foreclosure rate is in Canada? Calgary?
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