The much bigger problem is that home prices are going down, rapidly, and that's leveraged. Prices are down 16% in Toronto [1]. On the average 5:1 leverage - that's down 80% - anyone who bought in the last 1 year (a record number of buyers) is looking at steep loses.

Combine that with the fact that Canadians - like Americans pre-2008 - increasingly finance their lifestyles with HELOCs [2].

It looks like Australia and Canada might get their financial crisis they averted by kicking the can down the road in 2008.

[1] https://www.bloomberg.com/news/articles/2022-09-02/toronto-h...

[2] https://www.mpamag.com/ca/specialty/specialized-lending/how-....