Firmer Micro Foundations to Cdn Mortgage Markets, Despite Macro Parallels Explicit GSE guarantees Strongly capitalized banks & captive dealers, no shadow banking leverage Totally different funding model: deposit funding & large held-on-book component, versus reliance upon revolving door financing Financial institutions less reliant upon short-term lines No strategic defaults, outside of Alberta & Saskatchewan Less outsourcing of sales force in Canada Generally more conservative products, but not entirely No option ARMs in Canada, but entire book resets within 5 years No mortgage interest deductibility (with exceptions) Stricter underwriting criteria including independent appraisals & hair-cuts
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