CategoryMortgage News

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 July 17, 2025 Mortgage News

Ask the Mortgage Expert: Why this could be your window of opportunity into Canadian real estate

The Canadian real estate market, as we all know, has been a rollercoaster. We’ve seen the highs, the wild bidding wars, and then the cooling period as interest rates climbed. But here we are, in July 2025. I’m here to tell you that for the savvy buyer, today might just be that sweet spot you’ve been waiting for.

You’ve heard the chatter: “overvalued,” “affordability crisis,” “wait for prices to drop.” And sure, even cutting through the noise, if you’re expecting a 2021-style market frenzy, you’ll be disappointed.

But short of that, here are reasons why now presents a unique window of opportunity.

Interest rates are stabilizing (and perhaps declining)

We’ve seen the Bank of Canada make big moves over the years. But while we’re not back to rock-bottom rates, the aggressive hikes are behind us. The market is adjusting to a new reality.

What does that mean for you?

First, there’s less uncertainty around your mortgage payments. And with some economists forecasting further modest rate cuts through 2025 and 2026, locking in a rate now – or considering a variable option – could put you in a very strong position as borrowing costs potentially ease further.

This is a far cry from the rapidly escalating rates we battled just a year or two ago.

Plus, if the Bank of Canada continues to pause or cut rates, as many expect it will (with forecasts suggesting the policy rate could reach 2.25% by the end of 2025), your monthly payments on a variable rate mortgage will decrease.

This isn’t just about saving a few bucks; it’s about saving potentially hundreds or even thousands of dollars in interest over your mortgage term, with more of your payments going towards the principal.

Historically, variable rates have outperformed fixed rates over a full mortgage cycle. While we can’t predict the future with 100% certainty, the current economic tea leaves strongly suggest we’re moving into an “easing phase.” This means that the risk of rates suddenly skyrocketing is significantly lower than it was a couple of years ago.

A more balanced market (in many regions)

Forget the desperate bidding wars of yesteryear.

In many parts of Canada — particularly in the historically hot markets of Ontario and British Columbia — we’re seeing increased inventory. This isn’t a collapse; it’s a normalization.

More listings mean more choice for buyers, and critically, more negotiating power. You’re no longer fighting tooth and nail against a dozen other offers. Continue Reading…

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.

Posted June 13, 2025 Interest rates

Ask the Expert: Can the new Liberal housing plan solve Canada’s housing crisis?

Recently, Prime Minister Mark Carney and the Liberal party unveiled Building Canada Strong, a new ambitious housing plan to accelerate residential construction with the goal of building 500,000 homes a year.

Their most notable policies include cutting development fees for new construction, having the government play the role of developer to build and manage affordable housing across Canada (the Build Canada Homes Plan), and to eliminate the Goods and Services Tax (GST) for first time homeowners purchasing homes under $1 million.

This plan comes at an uncertain time — Canadians are contending with high unemployment, stagnating real estate markets in our biggest cities, and an ongoing affordability crisis. Our mortgage expert weighs in on the new Liberal plan and where he thinks mortgage rates are heading in the near future.

What are your thoughts on the Building Canada Strong plan?

Do you think it goes far enough to solve the housing crisis? Anything you think they could do differently?

After a rollercoaster election and one of the biggest surprise turnarounds in history, we have a new minority government in Canada for the next four years led by Prime Minister Mark Carney. Love him or hate him, we should all wish the new leader all the best. His success will translate into our success.

Being Canadian means supporting your country and that means supporting and respecting your government. It’s okay to criticize when appropriate and necessary. We all do it. But in order … Continue Reading…

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.

Posted April 14, 2025 Mortgage News

Ask the Expert: Steve Garganis – What’s your Canadian mortgage strategy in Trump’s tariff war?

Make no mistake, we are in a war — an economic war. President Donald Trump has threatened, imposed, or temporarily reversed tariffs on just about every country in the world, including Canada.

Canada will now see a 25% tariff on aluminum, steel, Canadian automobiles and non-CUSMA-compliant traded goods.

The U.S. accounts for 75% of all Canada’s exports. As much we want to tough it out, some Canadians will find it tougher than others. Layoffs and job losses have already begun. My office has been contacted by clients asking for help after being laid off.

There’s no point in sugar-coating it: We’re in for a bit of a rough ride. But there are some things you can do to come out of this all right.

Does bad news for the economy mean good news for your mortgage rate?

Negative economic news has been rolling out over the past several weeks, such as inflation increasing to 2.6% in February from 1.9% in January, and the unemployment rate increasing to 6.7% over the same period, leaving another 36,000 people without a job. At this point, we have to stand back and look at what this means for interest rates and the housing market. Read more – Interview with Steve

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.

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.