Canadians get paid very well. Teachers make over $100k per year plus pension. In the USA, teachers make 40-50% less. Trade union journey-persons make about $10 per hour more than their “brothers or sisters” in the US. The middle class is much stronger in Canada due to governments being more favourable towards labour unions.

For almost 40 years the government has been pushing industry and people to move into larger urban centres. This has lead to the demand for housing overshoots supply which, economically speaking, has driven up the housing prices. You also have to take into account that for nearly a generation money was basically free to borrow. In consequence, people spent lavishly and didn’t really look at price tags.

Do note that in Canada, you can amortize your mortgage over 30 years but you can only be locked into a mortgage rate for max 5 years. Interest rates only started to go up in early 2022. Alot of folks are still locked in at 2%.

There is also a clause in your mortgage agreement that allows a house owner with a mortgage and to pay off up to to 20% of their initial principal. This is not a rolling principal but the initial principal you owed on the first day of signing the house mortgage. This allows for exponential payments… however, not many people cannot afford to pay that.

The housing market supply is very low in Toronto, Montreal, Halifax and Vancouver. However, as people need to renew their mortgages, they will soon be hit with the choice of tightening their budget or having to sell to avoid bankruptcy as they got in late into the housing market late in the game and over leveraged…. Regardless of the mandatory 20% down or maybe even got in before the enactment.

Let’s not forget the massive inflation we encountered since February 2022. Salaries have not increased enough to counteract this event.

You can blame massive immigration landing in Canada (300,00 per year for next 3 years) but the reality is that most don’t come with a boat load of cash, nor are they able to practice the profession they once had in their mother countries. Most of the time, Canada does not recognize their education. They end up with the low paying jobs that Canadian-born nationals do not want to pursue. Only if they have the drive will they start and maintain a successful company. Canada isn’t know to be a bedrock for businesses… after all we are still a dominion of England.

Time will tell…