2nd problem in Canada is that we as the individual have no savings
Actually, that is THE problem. The banks has lent boatloads of money to people to the point where most people carry an unreasonable debt burden. You can blame the banks for loose lending practices, but the responsibility for how much debt is carried rests with Joe consumer.
that is why Canada should force the banks to allow credit card debt to be converted to a mortgage style loan
Why on earth would you want to do that?? If you can't afford it, don't buy it in the first place. Honestly, our lifestyle expectations are incredibly unreasonable. When I was a kid, we lived in a 1000 sq foot home (4 people), took home made lunches to school every day, rarely went out to restaurants...
I had a great childhood. My folks spent what little extra money we had on great vacations.
When we were older and the house had been paid off, my folks spent more money on 'fun' stuff.
I'll step off my soapbox now.
FWIW, a bank will quite happily let you consolidate your debt into a mortgage, as long as you have the required equity. The reason mortgages are so low compared to other forms of borrowing is that the debt is secured against your house.