CategoryMoney saving tips

Posted September 30, 20252 Comments Bank News

Our Leaders Are Rolling Up Their Sleeves… To Wave the White Flag

Another week, another series of baffling decisions from Ottawa that leave you wondering what reality our leaders are living in. On September 17th, the Bank of Canada, in a move that surprised no one paying attention to our sputtering economy, chopped its overnight rate by another quarter-point. While this offers a sliver of relief for those of us with variable-rate debt, it’s a glaring admission that the economic engine is stalling.

But the real headline came a few days later, on September 23rd, when Governor Tiff Macklem delivered a speech titled, “Time to Roll up our sleeves.” You’d think that would be a call to action, a rallying cry for Canadian industry. Instead, it felt more like a blueprint for surrender.

A DANGEROUS PIVOT FROM OUR GREATEST ALLY

Governor Macklem’s big idea? After 15 years of dithering, he’s decided Canada has relied too much on the United States. His solution is to now, finally, forge “stronger trade relations” with Europe and, get this, China.

Posted August 8, 2025 Consumer Debt

The speed Discharge: Bankruptcy wins over Consumer proposal

In the world of debt relief, two primary options often come to mind: consumer proposals and bankruptcy. While both offer a path to financial freedom, they differ significantly in their implications and long-term effects. This article will argue why bankruptcy, despite its daunting reputation, can often be a more advantageous solution than a consumer proposal for individuals seeking to reestablish their financial footing.

When you’re drowning in debt, the idea of a “consumer proposal” sounds like a gentle breeze, a reasonable compromise. You offer your creditors a portion of what you owe, they agree, and you embark on a multi-year repayment plan. It feels less drastic, less shameful, than declaring bankruptcy. But let’s pull back the curtain on that seemingly gentler option, because from where I’m standing, a consumer proposal often leaves you in financial limbo far longer than the “nuclear option” of bankruptcy.

Posted August 5, 2025 Bank News

Refinance today before you can’t tomorrow

Alright, let’s talk mortgages. Because right now, for a lot of Canadians, that word “mortgage” isn’t exactly synonymous with “sweet dreams and financial freedom.” No, for far too many, it’s becoming a four-letter word that brings with it a whole lot of anxiety.

I’ve been in this business a long time, seen a lot of market cycles. But what we’re witnessing today is something else entirely. The sheer volume of people hitting their mortgage renewal dates with rates dramatically higher than what they signed up for just a few years back? It’s unprecedented. The “payment shock” isn’t just a buzzword; it’s a gut punch for a massive percentage of Canadian households.

Think back to 2020, 2021. Interest rates were practically giving money away. We saw fixed rates dipping below 2%, variable rates even lower. People bought homes, stretched their budgets, maybe even consolidated a little bit of debt with that sweet low-rate mortgage. Life was good, financially speaking.

Posted April 10, 20251 Comment Bank News

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.

Posted March 11, 2025 Bank News

Ask the Expert: Steve Garganis – With the capital gains tax hike on its way out, is this your chance to buy an investment property?

With the capital gains tax increase looking less and less likely, how should Canadians be thinking about investment properties? Is now the time to buy?

Earlier this year, the federal government announced that it will be deferring the effective date for the proposed capital gains inclusion rate increase to 66.67% from 50% to January 1, 2026.

The proposal to increase to the capital gains tax was first introduced last April applicable to gains above $250,000. (For gains below $250,000, the same 50% capital gains tax would apply.) However, the government didn’t have the opportunity to table the legislation before parliament was prorogued.

However, this capital gains tax increase would have left some people in a tough position.

Some that entered into new construction agreements in 2022 were the most vulnerable, as they would have purchased when real estate values were inflated during the lower COVID-era mortgage rates. (However, this may not be the case for all, as property values in general, are down across Canada compared with 2022, with condos taking the biggest hit in Toronto and Vancouver.)

Family cottage owners and long-time property owners with larger capital gains would also be affected. Read More – Interview with Steve Garganis

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.