Pork,

Your 1.5 trillion includes all residential properties over 1 million that aren't covered by CMHSC! Also you forgot the private insurers that are also taxpayer backed like glenworth.

So yeah, the market for houses under 1 million that are backed by CMHSC or Glenworth et al and government backed is much higher than 35%, its over 50%. So yeah, there is DIRECT market manipulation by the government. Take away the government backing of CMHSC and make CMHSC and glenworht only cover max 80% of a mortgage and watch the market 'correct'....downwards significantly. All canadians are paying to backstop the risk of mortgage holders...