"The only thing that will slow the pace of price growth is increasing the cost of capital."

Wrong.

Millionaires with money from overseas, who continue to buy houses in Vancouver and Toronto, could not care less if Canada raised mortgage rates to 20 percent a year. They pay cash down, so do not need to justify a mortgage with a local Canadian bank based on yearly income.

In fact they would love it if Canada raise mortgage rates to 20 percent a year, because it would force more sales (drowning local workers) thus giving them more houses to buy.

Your error is failing to learn from Vancouver. As soon as massive amounts of overseas money floods in, the dominoes fall and local workers place ever more and more percent of their pay into mortgages.

So your wish for more stringency with capital will simply drown out those local workers, and assist ultra-rich folks with money from overseas to buy an even bigger slice of the pie. The latter group (you ignore) is THE KEY needing addressing.