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A huge difference is that, unlike in the USA, mortgage interest is not tax-deductible. There is no artificial inducement to "max out" the mortgage for the tax write offs.
Comparing the two scenarios is artificial. The housing markets outside of Vancouver and Toronto are not overheated. I can imagine the two major markets experiencing a correction when overseas investors discover regions they deem to be a safer bet. But for now those same investors keep bidding up the prices in Toronto and Vancouver. Not anywhere else, though.
I have to wonder if the writer of the piece spoke to anyone other than those in the Vancouver and Toronto real estate markets? Methinks not based on the blanket country-wide conclusions.
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