There won’t be a landing for many – just a black hole called bankruptcy. Hopefully, they’ll teach their children and their children’s children about mortages and financial responsibility.

I’m not a fan of Trudeau but, in fairness, the world is experiencing inflation, not just Canada.

It sends the message that for the remainder of the year that 3x 100 bps “mega hikes” may be a reality. Industry and media should get that message out to the masses before people take out more massive loans.

However, the majority of the population don’t speak BoC/Financials. Worse yet, you have an entire industry who relies on selling homes on mortages to get paid via commissions. They’re all (scratch that, some are) telling their clients that this is transitory. So many industry “expert” forcasts see housing prices still increasing by Q4 2022 (what a load of BS).

This is a strong signal that more “mega hikes” are on the table, so stop borrowing to inflate assets. Lets be honest, 2.5% is still stimulating considering historic interest rates before the pandemic. Unfortunately, some people who bought into the peak will be feeling pain in a couple of years.

The overnight rate at 5.5% is very possible given that they’re still 3 to 5% away from the target inflation rate (June’s inflation numbers will show what the hikes have had any effects).