Hell, you don’t even have to get them to co-sign, just draft up a rental agreement on MS Word saying they’re going to pay exorbitant amounts to live in your basement, and use that as income in your application.

This isn’t complicated – bond prices low, yields go up, and vice versa. No individual, including Tiff Macklem, would buy a bond today that is sure to lose money. The only game in town is institutional money. Once the BoC comes out openly in disregarding their legal mandate to manage inflation, institutional money managers would be violating their fiduciary responsibility to ensure returns and wouldn’t be liable to continue buying bonds; pushing yields higher still. If the safest instrument in the world, US Treasuries, got dumped in March 2020 by emerging market central banks, the attractiveness of Canada’s debt is anybody’s guess.

You mean the stress test I passed by getting my whole family to co-sign? lol Any mortgage broker worth his salt could get you credit if you want – in some cases without even a down payment (go on Kijiji for no down mortgage).

Remember they started the mortgage bond purchase program before the pandemic. They were worried prices were going to crash even before they got a license to print.

Yields have been low or negative because the market has been pricing debt in the context of expectations that developed economies would face deflation or at least remain stuck at the zero lower bound.
If inflation is going up, people expect greater return for their money and demand higher interest rates. The price of bonds fall to produce a higher yield on debt.

Other spending is diverted from the economy, causing slower economic growth. The funny thing is with things like gas prices, the economy is surging higher, but the net sale of fuel is largely just due to increased costs since inflation doesn’t properly capture it.