The sub-prime mortgage crisis is often miscast as the cause of the US housing bust and that because Canada's sub-prime industry is supposedly much smaller in comparison, fears of a similar housing correction are greatly exaggerated. For the record, the US sub-prime crisis was triggered by the bursting of the US housing bubble, which peaked in 2005 to 2006. In addition, the distinction between prime and sub-prime lending is not clearly defined. Canada is certainly no stranger to non-prime mortgage lending. All things considered, we are greatly concerned about the elevated level of Canadian home prices and high household debt, and stand by our 25% price correction.
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