Banks earned nearly $60 billion in profits last year while Canada’s housing crisis deepened.
Canada’s mortgage debt has reached $2.2 trillion—representing 85% of our GDP, one of the highest ratios among developed economies. This staggering dependence on housing debt reveals a system that enriches financial institutions while making households poorer.
Our groundbreaking research exposes how banking practices actively drive housing unaffordability and displacement. Mortgage lending that inflates house prices. Commercial financing that incentivizes tenant displacement and fuels the climate emergency.
Across the country, seemingly “neutral” banking systematically undermines the human right to housing.
“Canada’s housing crisis cannot be understood—or solved—without understanding the role of banks.”
Banks & Canada’s Housing Crisis
This briefing paper examines the largely unexamined relationship between Canada’s banking sector and the housing crisis. Based on extensive research and consultations with housing experts, it provides a plain-language analysis of how bank lending practices, mortgage securitization, and commercial financing contribute to unaffordability, household indebtedness, and tenant displacement.
The paper offers concrete recommendations for reforming banking practices, improving transparency, and ensuring climate-responsible housing finance.
