Every dollar spent servicing a hyper-inflated mortgage is a dollar removed from the real GDP economy
Let's look at the zero-sum nature of household financial allocation. When an average middle-class family is forced to commit 50–60% of their gross monthly income strictly to servicing the principal and interest obligations on an overpriced residential mortgage, that capital is completely vaporized from the perspective of the broader economy.
Those billions of dollars cannot be used to purchase consumer goods, support local restaurants, invest in corporate small businesses, fund specialized education, or acquire productive financial assets. The housing bubble acts as a massive, structural drag-anchor that slowly suffocates the velocity of money across every other sector of the Canadian economy, ensuring a future of permanent, secular stagnation.