They Removed The Mortgage Stress Test!

Jesse Merson has spent about 20 years in mortgages, most of it inside two of Canada's big banks, and the last two as an independent mortgage agent. I went into this one expecting to hear the system was about to crack. I came out calmer than I went in. Jesse Merson - Mortgage Agent, Vine Group Mortgage Brokerage | vinegroup.ca Listen on Spotify and Apple Podcasts - search "Supply and Demand with Adam Nadler" Book a call with Adam: https://calendly.com/pictureyourdreamhome Visit: https://visionrealestate.ca/ Email: [email protected] | Cell: 647-328-8958 Adam Nadler is a licensed Realtor with RE/MAX Your Community Realty, serving Toronto and York Region. The opinions expressed are solely those of the speakers and should not be misconstrued as financial advice or the basis of an agency relationship. Please consult your professional advisor before taking action. Not intended to induce breach of an existing agency agreement. #CanadianRealEstate #MortgageRenewal #FixedVsVariable

Scott Gannon has spent 30 years working with business owners in Halifax on one problem: keeping the money they have already made. His view is that most people are losing ground without knowing it, because a "safe" 5 percent return, taxed at close to half and measured against real inflation, is actually going backwards.

Canadians are being told inflation is running around two and a half percent. The money supply is growing at seven to eight. Both of those cannot be true, and the gap between them is the reason everything feels harder than the official numbers say it should. That gap is the thread we pull on for an hour, and it goes somewhere bleak. The first is that nobody signs a five-year mortgage anymore. Jeff Mudrick has written roughly one all year. Everyone is taking two and three year terms, and when you ask them why, the answer usually is not about interest rates at all. It is about wanting the term to end when they think the chaos ends. Every year the term gets shorter, and every year the chaos does not end. The second is worse, because it has been sitting there for a decade and almost nobody knows. Your Ontario property taxes are calculated on what your home was worth on January 1, 2016. Not last year. 2016. The reassessment due in 2020 was postponed during COVID. The one due in 2024 never happened either, and a 2023 regulation extended the freeze. Mortgage applications right now routinely show an assessed value near three hundred thousand dollars against a property genuinely worth close to a million. That gap does not close gently. Whenever the province finally moves, a decade of price growth arrives on one bill, and nobody gets to phase in a decade of their own budget to match it. Jeff is a mortgage broker and this is his fourth time on the show. We get into the mechanics almost nobody explains: why the bank offering the best rate this month is doing it because of its own fiscal year end and not because it likes you, how the stress test quietly pushes buyers toward variable rates whether they want them or not, and the gap between what a lender says you can afford and what you can actually live on without eating instant noodles for five years. We also get into why interest rates are not actually the problem. The twenty year average for a five year fixed is about 4.18 percent. We are roughly there. A two hundred thousand dollar mortgage at twelve percent and a four hundred thousand dollar mortgage at four percent cost almost exactly the same every month. Same payment, twice the debt. That is the real story, and it is not the one people argue about. Fair warning: this one gets bleak in the middle. We talk about how inflation is actually calculated, why the number you are told is not the number you are living, and the economic condition where nothing works the way the textbook says it should.

Benny Gendelman is a financial advisor and friend of the podcast. We get into rent versus buy when the S&P has been compounding at nine to eleven percent, why only four percent of stock pickers beat the market, where crypto and gold actually belong, and the difference between whole life and universal life in plain English. Then it turns into something bigger, about protecting your family before you buy the watch. Thinking of buying or selling in the GTA? Call or text Adam at 647-328-8958. Adam Nadler | Vision Real Estate RE/MAX Your Community Realty [email protected] | https://visionrealestate.ca

Nathan Graham spent 16 years as a real estate broker and mortgage agent. Now he builds AI agent systems for companies and C-suites. Connect with Nathan Graham: Business: Synthetic Echo Website: https://syntheticecho.com Thinking of buying or selling in the GTA? Call or text Adam at 647-328-8958. Adam Nadler | Vision Real Estate RE/MAX Your Community Realty [email protected] | https://visionrealestate.ca This podcast is for general information only and is not financial, legal or technology advice. AI tools change quickly, and any pricing, capability or product claim discussed here reflects the date of recording. Verify current terms before relying on any platform, and use a qualified professional to review anything that touches client data, privacy or security.