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A new study proposes that lenders share in the pain if housing prices drop dramatically, but also share in the capital gains when properties are sold.
A new study proposes that lenders share in the pain if housing prices drop dramatically, but also share in the capital gains when properties are sold.
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How to fix Canada’s housing market

A smart way to cushion Canada’s economy from future housing bubbles involves nothing more than re-engineering our mortgages.

In their new book, House of Debt, Atif Mian and Amir Sufi argue that out-of-control housing prices tend to inflict long-lasting pain on a country’s economy, but much of that distress can be avoided. The key? Forcing banks and other lenders to share in the ups-and-downs of the real estate cycle by requiring them to bear part of the cost if a housing boom implodes.