Quote:
Originally Posted by Slava
I know things are different, but that line of thought didn't hold in 2008-09. People (in the US, because Canada wasn't at the epicenter of the GFC/subprime) were walking away from their homes and renting. The thought was that people could keep their car that way, still work and keep things rolling, but if they got rid of the vehicle at that point they were stuck in a house that they couldn't afford payments on.
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That was in the face of double digit unemployment though. Obviously if people lose their source of income and can't make payments, that changes things. But that isn't happening right now. Also, unlike much of the US, you can't just walk away from your house in most of Canada due to full-recourse mortgage rules. If you sell for less than the amount owed as a mortgage, you're liable for the difference unless you declare bankruptcy.