I came across an article today that I've been try to stress for a couple of years now. (more so when the federal government starting changing mortgage rules)
The debt problem brewing in Canada is NOT due to mortgages. The problem is due to all the un-secured debt; line of credits, visas etc. which the banks almost force on people to take.
The article is here and I truly beleive that something has to be done.
The end all is that we must be responsible for our own actions and not take on the unecessary debt. However, if a family situation takes place, sometimes you need to fall back on the equity in your home. With all the rules that have pretty much killed the refinance business and with more and more banks registering mortgages as collateral mortgages not allowing you to take out a second, I guarantee you that we will start to see more foreclosures, consumer proposals and bankruptcy's.
Time will tell...
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