Put simply, yes and no. We have mortgage insurance in Canada, and this is law. American regulators put very few limitations on who can borrow mortgages. It is significantly more difficult to obtain a mortgage in Canada however, if our real estate value drops for any reason, (including economic meltdowns elsewhere) sellers could find themselves selling for less than what they paid. If the situation is long term, we would see people that are considered 1st class borrowers walking away from their homes. This is not a likely scenario, but it could happen. Particularly, when you see the ineptitude of the governments, financial institutions and investment firms that cause and allow economic meltdowns to occur. These outfits should be our biggest fear and they should be under more scrutiny.