Murray Dobbin warns via Rabble.ca:
"[W]ith interest rates where they are, over 375,000 Canadian mortgage holders are "challenged" by their monthly payments. When interest rates hit 5.25 per cent, an additional 500,000 home "owners" will be in that situation. In other words, almost a million Canadian families will be cutting back on expenditures on food, clothing, education, travel and health just to stay in their homes. Tens of thousands will fail and many thousands will face bankruptcy. (The Canadian government is on the hook for virtually all the defaults.) All of this would be certifiably delusional even if the country was booming and salaries and wages were increasing. It is utter madness in the current context."