Regarding the current credit crunch, I did some digging and learned some lovely little nuggets about Canada.
Less than 25% of house loans in Canada are securitized (by someone else, other than the banks) meaning over 75% are on the the banks balance sheets, making the banks accountable. The higher risk sub prime mortgages account for right around 5% of the Canadian market (compared to more than 25% of the USA market). Canadian housing prices are forcasted to contract by only 10-15% (whereas the USA has already fallen by 24%, and expected to fully correct in the 35%-40% range).
Canada has the lowest debt relative to its GDP, and the only G7 country to enter into this recession with a budgetary surplus (with “free” health care to boot.)
All of this really points to lenders not shutting their doors to Canadian consumers and businesses, regardless of what is going on in the global market.
While the financial conservatism of Canadians will help us through these global tough times, I can’t help to still be remiss that we will have negative impact to us at all – I mean, we kept our house clean, why should we face the negative consequences of irresponsibility elsewhere?