Population and Housing

[nms]

Thanks for all the comments and perspectives on the thought experiment. Part of this thought experiment was from wondering whether there was ever a ceiling that mortgages might hit. While mortgages are typically calculated over a 25-year time period, there is nothing that prevents a mortgagee from extending or renegotiating the mortgage to the point where they are still paying it off close to the end of their life.

Similarly, should Bank of Canada interest rates get close to the 20.78% peak of August 1981, what kind of a shakeup might happen and who will lose their shirts? We've been 'lucky' (?) to be below 1% for more than a decade.