Canada’s real estate market is notoriously unhinged. Home prices are up more than 35 per cent in just four years. Mortgage interest costs are up 30.9 per cent year over year. And rental prices are continually hitting record highs.
As inflation comes under control, there is a growing chorus calling on the Bank of Canada to cut interest rates, easing at least some of those affordability issues.
But Bank of Canada governor Tiff Macklem says a lower interest rate isn’t the silver bullet people are hoping for.
“Housing affordability is a significant problem in Canada but not one that can be fixed by raising or
