No, it doesn't.  If you don't know what you're talking about, best to keep quiet.  Bundled loans in the US were made up of hundreds (sometimes thousands) of loans, and sold off in individual investments to institutional and private investors for their income stream. They were sold as high quality, when in fact they were not.  That is fraud, and is not even close to what is being referred to as a "bundled" mortgage in the article.  You try to sound smart, but you are clueless.  The bundle here in Canada is simply a first mortgage from a conventional lender, and a second mortgage from a private lender like a MIC. The private lender takes the risk, that CMHC or another insurer used to take. The private lender takes 100% of the risk on their investment.  They could lose it all, and the taxpayer won't be helping them out.  The borrower is fully aware of the transaction, and it works well for them because they get the majority at a lower rate, and the second mortgage is more expensive.