77% GONE—The Truth About Canada’s “Safe” Housing Market

Summary

This video critiques the Canadian housing market, emphasizing staggering losses in real estate investments over the past few years. The script highlights the rapid devaluation of properties, with some losing over 70% in purchasing power. It points out how the housing market bubble is collapsing, exposing financial mismanagement, mortgage delinquencies, and flawed data from banks. The video compares the situation to previous market crashes, showing how housing is no longer a safe investment, but a destructive financial trap for many homeowners. The looming financial crisis is framed as a depression in real economic terms.

Takeaways

• 😀 Real estate in Canada has suffered massive losses in purchasing power, with a 70% real loss in value from the appraisal in 2022 to 2025.
• 😀 The Canadian housing market is described as a collapsing bubble, with losses escalating, and predictions indicating it will reach a 77% loss.
• 😀 A key example showed a 30% nominal loss for a property bought in 2017 for 1.48 million, and when adjusted for inflation, the loss climbs to around 50%.
• 😀 Mortgage delinquency rates are misleading, with official reports underestimating the number of people who are struggling to meet payments.
• 😀 The reality of mortgage defaults is much worse than what is reported, with 17% of people missing mortgage payments, contrary to the reported less-than-1% default rate.
• 😀 Many people are using credit facilities to pay off debts like mortgages, rent, car payments, and business loans, indicating widespread financial stress.
• 😀 The financial system is flawed, as evidenced by cases where mortgage brokers advise people to hide job losses from the bank to close deals.
• 😀 A property purchased for 3.25 million in Hamilton in 2022 now has a market value of 1.85 million, reflecting a 43% nominal loss and a 62% real loss when accounting for inflation.
• 😀 A 2022 appraisal valued a property at 2.1 million, but it sold for only 900K in 2025 after 8 months on the market, showing a 57% nominal loss and a 70% real loss in purchasing power.
• 😀 The speaker highlights that people were misled about the safety of housing investments, which have now resulted in significant financial losses for many individuals.
• 😀 The script compares the current Canadian housing market crash to the UK’s housing market post-2008, suggesting that what is being referred to as a 'recession' is actually a depression for many individuals affected by real estate losses.

Q & A

What is the main issue discussed in the video regarding Canadian real estate?

The video highlights the significant loss in purchasing power from Canadian real estate investments, with properties losing up to 70% of their value in real terms between 2022 and 2025.

Why are people losing money so quickly in Canadian real estate, according to the video?

The rapid losses are attributed to a combination of market bubbles, inflation, and a collapse in property values. The video suggests that real estate was portrayed as a safe investment, but it has proven to be disastrous due to mismanagement and economic factors.

How does inflation impact the real value of property losses?

The video explains that when factoring in inflation, the real loss in purchasing power is far greater than nominal losses. For example, a 30% nominal loss could translate into a 50-70% real loss due to inflation.

What does the video suggest about the current mortgage delinquency rate in Canada?

The video claims that official mortgage delinquency rates are misleading. It highlights that while delinquency rates are reported under 1%, a significant percentage of individuals (17%) have actually missed mortgage payments, indicating a larger financial crisis.

What is the significance of 'power of sale' in the video?

'Power of sale' refers to the bank's right to sell a property when the homeowner defaults on their mortgage. The video uses multiple examples to show how more properties are being seized and sold at significant losses, indicating widespread financial distress.

How do the Canadian housing market trends compare to the UK housing market, according to the video?

The video compares the Canadian housing market's downturn to the UK's post-2008 recession, where despite nominal increases, real housing prices have not surpassed 2007 levels when adjusted for inflation. It suggests that Canada could face a similar long-term stagnation in real estate value.

What does the video say about the role of mortgage brokers and financial advisors in this crisis?

The video criticizes mortgage brokers and advisors for being incentivized to push through mortgage approvals, even in cases where borrowers may be financially unqualified, thereby contributing to the housing bubble and subsequent financial strain.

What is meant by the term 'CP lie' in the video?

The 'CP lie' refers to the Consumer Price Index (CPI), which the video claims underreports actual inflation. It suggests that real inflation is much higher than what official CPI numbers show, leading to even greater losses in real estate investments.

How does the video describe the state of the Canadian economy in relation to the housing market?

The video argues that while the economy is being referred to as being in a 'recession,' it is actually experiencing a 'depression,' primarily due to the collapse of the housing market. The housing crisis is exacerbating the economic downturn, impacting people's livelihoods.

What message does the video convey regarding the future of housing investments in Canada?

The video warns that investing in real estate, particularly in Canada, is becoming increasingly risky and unprofitable. It suggests that many people are waking up to the fact that housing, once seen as a safe investment, is causing significant financial loss and hardship.