>>520285502
Wrong, banks do not hold the mortgages. The mortgages are insured by the government (CMHC) and then purchased by the Government of Canada (not CMHC) as securities. The Government of Canada uses pension funds to collateralize their debt, to ensure lower interest rates. This not normal.

Banks are not at risk for a mortgage breakdown, the tax payer is. If you hold Canadian dollars you're basically lending money to mortgage holders at 0% interest rate. This is why the Bank of Canada aggressively cuts rates, they'll sacrifice the currency over and over to keep the whole thing from collapsing. They don't have a choice. They can't lower housing prices without collapsing the economy. They can't do anything.

https://www.bankofcanada.ca/markets/canada-mortgage-bonds-government-purchases-and-holdings/