A cautionary tale on mortgages from Canada

In the years ahead, Greece should take great care regarding its enthusiasm for North American-style mortgages as a vehicle for encouraging homeownership. 

It should look no further than Canada, where a recent report says Canadians are carrying the highest personal debt levels of all G7 countries - much attributed to homeownership. 

The report, by the Canada Mortgage and Housing Corporation (CMHC), the federal housing agency, says that around three quarters of household debt in Canada stems from mortgages. More specifically, it says: "Household debt in Canada has been rising inexorably. At the time of the recession in 2008, it stood at about 80% of the size of the economy, in 2010 it rose to 95%, and by 2021 debt exceeded its size. By contrast, household debt in the US fell from 100% of GDP in 2008 to about 75% in 2021." 

Considering the roots of the 2008 US...