TagFinance

House Poor is Out. “Kid Poor” is In.

Why the cost of modern parenting is drowning families—and how to be the adult in the room to fix it.

This is an article I began writing 8 months ago. I delayed publishing it because my inner circle said I would get a lot of hate mail.. Well, after seeing more families fall into these situations, I have to speak out. For what it’s worth, I softened the wording to make this easier to digest.

Every parent shares a universal instinct: the desire to give their children the world. We feel a heavy, almost biological responsibility to provide every opportunity life has to offer. In previous generations, this was simpler. Forty years ago, parenting often meant handing a child a stick and a ball, or a cardboard box, and telling them to play outside until the streetlights came on.

Posted 2 weeks ago Bank News

Canada Housing disaster 2025: The Great Canadian Shell Game

If you’ve been waiting for a miracle in the Canadian housing market, I hope you like waiting. Despite the “bold” headlines coming out of Ottawa and the provinces, the average Canadian is still getting squeezed until the pips squeak.

I thought it was time to do an annual review on how our governments performed in 2025 regarding the housing shortage crisis. The quick assessment? It is a failure of math, policy, and will.

We’ve had a new budget, a new “housing czar” approach from the Federal Government, and a lot of expensive-looking agencies. But let’s look at the numbers—because the numbers don’t lie, even if the politicians do.

Posted 1 month ago Bank News

Stop Bleeding Cash: Why Your Mortgage is the Ultimate Financial Power Tool

Let’s have an honest conversation about the financial squeeze many Canadians are feeling right now.

Prices are up at the pump, at the grocery store, and certainly in utility bills. But for many homeowners, the real pressure isn’t just inflation; it’s the “silent killer” of accumulated consumer debt sitting on top of their mortgage.

I see it every day in my practice. Good people, with good incomes, who have managed to build significant equity in their homes, yet they are drowning in monthly payments because they are financing their lives using the wrong tools. They are using 19.99% credit cards and 11% lines of credit for expenses that should be financed at 4-5%.

It makes absolutely no financial sense.

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.