6 Well-regulated mortgage market Given the genesis of the crisis in U.S. subprime mortgages and its subsequent potential to taint everything related to mortgages and securitization, the structure of Canadian mortgage finance also proved to be a major advantage. Common-sense attributes include mortgagors being personally liable for their debts and mortgage interest not being tax-deductible.
In addition, key lending standards are effectively set by the terms of government-backed mortgage insurance. 7 Banks are required to have insurance on the mortgages of purchasers  4  Office of the Superintendent of Financial Institutions Act, 1985. Published by Minister of Justice.