Not as long as the Government stays out of it

CMHC - Crown Corporation. 1998 - 5% of mortgages were securitized, 2008 25% are securitized.

"The Canadian securitization market has grown rapidly over the past decade, rising from roughly 5 percent of mortgages in 1998 to over 25 percent in 2008. However, in many ways, the Canadian market resembles the early stages of the U.S. mortgage securitization market, as most securitized mortgages in Canada are backed by an explicit government guarantee."

And they aren't bailing out the borrowers, they are bailing out the counter parties and ensuring the cash flow on all those AAA rated products make it to the requisite party on time.

Home renovation tax credit is also a form of government stimulus not to mention Canada's Economic Action Plan which pumped millions into housing projects from coast to coast which in turn gets turned into freshly packaged mortgage backed securities.

I would say the government can't get in any deeper than they already are other than buying every Canadian man, woman and child a house.