I’ve always thought a lower Loonie was a terrible idea – Immigrant-fueled demand powering Canada’s housing market – October 17, 2019,

So, for the record I’d like to remind the reader, that the Canadian dollar is artificially low, when the U.S housing market crashed, the Canadian housing market crash, now the reason the Canadian housing market didn’t crash had little to do with the Canadian government or Canadian banks, it actually had to do with the frugality of Canadians, or I should say Canadians not buying housing they can’t afford. Immigration and real estate investors unfortunately in the last few years, have turned this concept upside down, so when the coming Canadian housing market crash happens or doesn’t happen is going to catch a lot of people off-guard.

In the event the Canadian housing market is Teflon, renters in both residential and commercial spaces are going to be left with the bill, this basically will turn Canada into California as the economy slides or mass immigrants makes the problem worse. Although Immigrants are fueling the housing market boom, I remind the reader that not all immigrants are buying housing, the majority of immigrants are dependents who aren’t working and are heavily dependent on social services. Sure. those numbers will be revealed when the correction occurs but for now, people are enjoying the good times.

In the event of a housing crash, extending amortization isn’t going to help very much as more than likely lenders are going to exit the Canadian housing market. It’s hard to get non-schedule 2 and three lenders to commit to 100 year amortizations, typically some sort of Government promise or government insurance will have to come along with extended amortizations and being that the current economic outlook for Canada doesn’t seem so good, chances are investors will deploy their capital into other areas. Now, because times are good, nobody is talking about this, but who cares really, I’ve reached the point where it’s my belief Canada has to learn things the hard way.

Immigrant-fuelled demand is helping to power Canada’s housing market | financialpost.com

Interesting times ahead!