They have a different economy, but still....only less than 1% of all Canadian mortgages are in default and no Canadian bank failed during this recession.....or during the Great Depression. The key seems to be higher underwriting standards, and yet the rate of home ownership is about the same as in the US. A few key features are: * The typical loan requires 20% down and lasts for 25 years. * There is no mortgage interest deduction, which is thought to encourage Canadians to pay down their mortgage debt faster. * These loans are recourse. If the debtor hands the keys to bank, he still owes. * There is no secondary mortgage market. No Fannie Mae or Freddie Mac will take a loan off a bank's books. Here's the entire article: Few foreclosures, no bank failures: Canada offers lessons | cleveland.com What say you? Should we borrow these ideas?