Send us a text

In this episode, we dive into the big issues facing Canada’s economy and housing market: from temporary foreign workers (TFWs) and rising unemployment rates to the sharp decline in new condo developments. We explore the long-term impact on Canada’s workforce and housing, and how government policies are shaping the future of employment and real estate.

Topics Covered:

1. Canada Cutting Back on Temporary Foreign Workers (TFWs):
   • Canada is reducing the number of low-wage TFWs to address high unemployment rates among immigrants and young people.
   • Sectors with 6%+ unemployment won’t be allowed to hire TFWs, except for food security, construction, and healthcare sectors.
   • TFW program changes include limiting TFWs to 1-year contracts and capping employers from hiring more than 10% of their workforce through the program.
2. Unemployment Statistics:
   • Newcomer unemployment at 11.6% and youth unemployment (ages 15-24) at 13.5%—the highest in a decade.
   • A growing crisis highlighted by the UN calling Canada’s TFW program "a breeding ground for modern-day slavery."
3. The Strain on Housing:
   • Not enough housing for the influx of TFWs.
   • Canada holds the highest number of TFWs in the G7, with job fairs overwhelmed by applicants struggling to find work.
4. New Developments Dropping Off a Cliff:
   • In July 2024, only 266 pre-construction condos were sold compared to a 10-year average of 2000 units.
   • Appraisals are falling short, while development fees are rising. Burnaby, for example, increased development fees to $50K per unit after receiving $80M from the federal government for the Housing Accelerator Fund.
5. The Future of Condo Development:
   • Developers may shift to subscription-based models, building rental units instead of condos for sale to capitalize on easy, long-term revenue gains.

Key Takeaways:

• Canada's TFW program is being scaled back to address unemployment, but the housing shortage for these workers remains a serious issue.
• New condo developments have hit record lows, with developers potentially shifting towards rental projects.
• Rising development fees and appraisals coming in short are further hindering real estate growth.

Resources Mentioned:

• Arpan Khanna's video on the immigration crisis (MP for Conservatives in Oxford, ON)
  Watch on X (Twitter)

Send us a text

In this episode, we dive into the effects of rent control on the housing market in BC and Ontario. With BC capping rent increases at 3% for 2025 and recent rulings allowing a 23.5% hike, we explore whether rent control is solving or worsening the housing crisis. We also look at Argentina’s bold decision to remove rent control and the surprising results.

What We Covered:

• BC Rent Cap of 3% in 2025:
  What does this mean for landlords and tenants moving forward?
• Recent 23.5% Rent Increase Ruling:
  We discuss the reasons behind the ruling and its impact on the rental market.
• Should We Abolish Rent Control?
  Arguments against rent control, including its impact on supply, maintenance, and rental costs, and the potential political fallout of removing it.
• Argentina’s Success Story:
  After removing rent control, Argentina saw housing supply increase by 212%, rents drop by 26%, and mortgage costs fall by 30%.

Key Takeaways:

• Rent control may worsen housing affordability by reducing supply.
• Argentina’s removal of rent control shows promising results.

Resources Mentioned:

• BC Rent Cap Details
• Global Studies on Rent Control
• Argentina's Rent Control Reform

Follow Our Hosts

• Alex Pang
• Alex Shanks

Send us a text

Episode Description:
Welcome to the very first episode of The Canadian Mortgage Show! In this episode, we dive into the current state of the Canadian economy and how it impacts your mortgage decisions. We discuss the latest news on inflation, the recent rate cuts by the Bank of Canada, and what’s forecasted for the remainder of the year. Plus, we explore refinancing opportunities for those with higher interest mortgages.

What We Covered:

• July Inflation Rate at 2.5%:
  We break down what the inflation rate means for Canadians, why it matters, and how it might impact your mortgage payments and future rate decisions.
• Bank of Canada Rate Cut:
  The Bank of Canada recently cut the interest rate by 0.25% and is forecasted to cut it by another 0.50% before the year ends. We discuss what this means for both variable and fixed-rate mortgages.
• Mortgage Rate Forecast and Strategy:
  Should you lock in a 3-year fixed mortgage or opt for a 5-year variable rate? We explore the pros and cons of each, offering insights on which strategy may work best in the current market.
• Refinance Opportunities:
  If you have a mortgage with a rate of 6% or higher, now could be a great time to consider refinancing. We explain how refinancing could lower your payments and save you money over time.

Key Takeaways:

• Inflation is slowing down, which is good news for mortgage rates.
• The Bank of Canada is expected to continue cutting rates, which may create more favorable conditions for those with variable-rate mortgages.
• Now might be the time to explore a shorter-term fixed mortgage or stay the course with a variable rate.
• If your mortgage rate is 6% or higher, refinancing could offer significant savings.