A Financial Crisis Or Is It?

2025 will go down in history as one of those years filled with volatility and turmoil. There’s a quote from a book I read that seems appropriate today. “People want certainty versus accuracy.”  I hope to give you certainty by sharing my 36 year experience in financial services and having lived through 5 financial crises and living through a 6th crisis today.  

I’m going to take a risk and speak very bluntly.  This may anger or upset some of you. I apologize, I have to say some things. I have to point out the obvious.   

FIRST THE BAD NEWS…

I’m a math guy. Work with numbers every day. The stats don’t lie. Our economy, GDP, cost of living, housing costs, have all gone into the toilet.  You don’t need to look very far to believe this. Many of you have contacted me about job losses, or potential job losses.  Those secure in their jobs call me because they have increased their debt levels and this can be for many reasons.  The point is, many are having a hard time paying their debts.  

My clients and followers have incomes from $30,000 to $3,000,000 and more.  And if you think the $3,000,000 are not concerned, guess again.  Many of those clients own multi unit and commercial properties. They have tenants that cannot pay them causing emotional and financial stress.  We all suffer to varying degrees during a financial crises.

This is my quick note to ask you to vote in this election. You can probably tell which way I’m voting. I hope you do the same but I will respect everyone’s right to vote how they see fit.  Just get out and vote for what’s best for you and Canada.

HOW THINGS WILL UNFOLD IN THE COMING MONTHS …

As I mentioned earlier I have been through several financial crises. I’ve learned a few things now and I want to share them with you. Here’s a quick list of what I’ve seen and lived through during my adult years.

First let me tell you, that this will pass. All crises end at some point and this one will too.  We don’t know when but we do and have seen a pattern of governments stepping in to end financial hardship much quicker than 30 and 40 years ago. 

While all financial crises may seem different , there are many similarities.  First, they all come as a surprise to many (not all by the way).  They cause a large percentage of people hardship in the form of higher costs of living or job loss. This is really what we’re talking about. 

For those affected by job loss, I empathize with you. This is like a kick in the teeth. But it’s not the end. You will bounce back. You will find another job or perhaps start a business.  You will adapt and modify your search or upgrade your skills to make yourself more marketable. These are the ways that I know of that will resolve this problem. Stay positive. Persistence is your friend.  These aren’t opinions, this is what I have seen happen over and over again.

Next, adjustments must be made in your spending habits.  Yes, it’s time to modify how you spend.  If the math is not working for you, or you need help to explore your financing options, please reach out to my office for a review.  We are happy to help.   

Depending on the results of your review, you may conclude that some restructuring of your financing will be the solution.  We see this often.  But for those that cannot make the math work, it could be time for a bigger change.  Perhaps disposing of assets or selling the house.  And hey, this isn’t anything to be ashamed of.  This is life.  The goal is to get you back to a positive cashflow situation.  By the way… if you do nothing, the problems don’t go away. I have seen that scenario play out many times and this ends badly. Please don’t sit on your hands. Reach out for help to hear what’s possible.

Most of these crises have a silver lining.  The stock market always goes down when there is uncertainty.  But oddly enough, it always comes back. And I do mean always.  For over 100 years and counting.  Just google it and you will see, in case you don’t already know this.   The same is true for real estate.  It increases in value over time, as always has.   

Home prices have fallen as have mortgage rates.   I have heard this one sentence thousands of times… “I wish I would have bought that house a few years ago or when prices were lower” or “I wish I would have bought that rental property a few years ago”.  Sound familiar?  Guess what?  That’s what we’re going to hear again in the very near future. 

And for those that are considering panic selling in the stock market, please speak with someone before you do this.  Panic selling never ends well.  Let’s make sure you sell for the right reasons or perhaps don’t sell.  Experienced investors got back in the market this week.  Buy low and sell high, as they say. 

My advice today is to talk to experts… Please don’t rely on a website or someone on tiktok, instagram or a chat with your plumber, doctor, mechanic, store manager, etc… I’m sure they are smart people but this isn’t their area of expertise.  

Everyone is different and has different circumstances. We have different financial goals, needs, objectives. We are all different.   

My message is, this will pass. It always does.  Be strong, stay positive and focused. 

I hope you will enjoy this article and if you have any questions or would like to discuss I am always available.

Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.

Steve Garganis: 416-224-0114; steve@canadamortgagenews.