Dan Ahlstrand and Clinton Wilkins discuss the importance of financial literacy, especially during Financial Literacy Month. They emphasize the need for education on credit, income, and assets, noting that schools often lack this instruction.
Clinton Wilkins and his team take to the streets to answer real questions from listeners about homeownership, saving for a down payment, and navigating the ever-changing mortgage landscape.
Clinton Wilkins and guests dive deep into the evolving landscape of mortgage lending in Canada. From the rise in mortgage fraud and the tightening of regulations to the increasing role of family support in helping first-time buyers.
In this special "Best of 2025" episode of Mortgage 101, Clinton Wilkins breaks down the year’s biggest trends in homeownership and mortgage lending. Clinton shares candid advice on the responsible use of home equity lines of credit, emphasizing the importance of not treating your home as an ATM.
Clinton Wilkins recaps this year by diving into topics like: Canadians facing renewals, the decision whether to refinance, consolidate debt, or just extend your amortization.
Clinton and Dan discuss financial literacy, mortgage rates, and housing market trends. They note that while other provinces like Ontario and BC see housing price declines, Atlantic Canada's property values rise by about 3% annually due to high demand. They highlight the affordability issues, with $29.40/hour needed to live in HRM, equating to around $60,000 annually. They also discuss the impact of new rental units on the market, predicting a rebalancing by 2026. The conversation underscores the need for early financial planning, especially for education and housing.
Clinton and Dan discuss the current state of the mortgage market, focusing on interest rates and home ownership. Clinton mentions a Bank of Montreal economist's projection of a 75 basis point reduction in the key overnight rate by early next year, which could lower mortgage rates to the 3% range. They debate the pros and cons of variable vs. fixed rates, with Clinton noting a shift towards variable rates. They also discuss the impact of rising rates on inflation and the potential for a 25 basis point cut in September.
Dan and Clinton discuss the challenges of student housing in Halifax, noting the high cost and limited availability. They observe a shift from parents buying properties for their children to more student housing being sold. Clinton highlights the impact of reduced foreign student numbers on the market. They debate the financial viability of buying a condo for students, considering factors like mortgage payments, property taxes, and potential appreciation.
Clinton is joined by Dan Ahlstrand, and the two discuss the current state of the housing market in the fall. Clinton notes that while the market is still busy, it's more balanced than in previous years, with listings above $600,000 staying longer on the market. He predicts a 25 basis point cut by the Bank of Canada, which could increase demand and potentially drive prices up. He also mentions the impact of tariffs on industries like tires and seafood in Nova Scotia.
Todd and Clinton discuss the impact of recent fires on insurance costs, noting that insurance premiums have risen due to increased risk factors. They also address the high costs of new home construction, citing labor and material expenses, and the challenges of new home construction, including overruns and scope creep. Clinton explains that most new construction mortgages are turnkey, with clauses for inflation and change orders. They also touch on the risks and complexities of draw financing, where borrowers act as lenders to contractors.
Clinton and Todd discuss the impact of inflation on interest rates and the housing market, noting that rates are expected to stay higher for longer. They explain the concept of net worth, including what assets and liabilities to include, such as real estate, TFSAs, and life insurance. The conversation shifts to refinancing, highlighting that it often occurs at renewal but can happen mid-term for various reasons like debt consolidation or renovations. They emphasize the importance of understanding amortization periods and the benefits of bi-weekly payments.
The guys discuss the impact of inflation and rising debt on home ownership. Clinton notes that Canadians are heavily indebted, with mortgages averaging $400,000, often supported by dual incomes of $100,000. Food prices have doubled, affecting household budgets significantly. They highlight the disparity between real estate prices, which have doubled, and stagnant incomes. Wilkins advises focusing on needs over wants to manage inflation better.
Todd and Clinton discuss the evolution of their mortgage show, emphasizing their dynamic approach to mortgage lending and broader topics. Clinton, with nearly21 years of experience, highlights his passion for the industry and his role as the Atlantic director for Mortgage Professionals Canada. He shares his business growth, handling $500 million in transactions this year, and the challenges of working with high-net-worth clients.
Todd and Clinton regroup to wrap up their discussion on Pride in Homeownership. They touch on the impact of political uncertainties, such as trade wars and interest rates, on the housing market. They noted that while rates have decreased, the market remains high, affecting affordability. Clinton highlighted the trend of younger buyers receiving large family gifts, often $100,000, to make down payments. They also discussed the shift in demographics, with more seniors and first-time buyers entering the market. Challenges in the trades, such as difficulty in accessing contractors, were mentioned.
Clinton and Blair are back to answer more mortgage questions from listeners. The two explain that mortgage payments are relatively stable, with a portion going to interest and the rest to principal. They emphasize the importance of the stress test in ensuring affordability and protecting borrowers from financial shocks. Clinton notes that while interest rates have risen from sub-2% to around 4%, the stress test prevents issues during renewal. They also discuss the benefits of maintaining a good relationship with a mortgage broker for long-term financial planning.
Todd, Clinton, welcome guest Blair Patterson to address questions from listeners, including how to prepare for buying a home in 10 years, the importance of automatic savings, and the impact of interest rates on mortgage payments. They emphasize the significance of credit scores, the benefits of automatic payments, and the challenges faced by queer clients in the housing market. Blair shares his experience transitioning from the Navy to a mortgage broker to help military and queer communities. They also touch on the growth of the Halifax region and the importance of financial empowerment.
Clinton Wilkins and Todd Veinotte discuss the intersection of Pride Month and home ownership. They highlight the importance of continuing to address issues of equality, noting that the percentage of homes owned by queer people is lower than that of straight people. Clinton shares his experiences as a mortgage broker, emphasizing the challenges faced by the queer community, such as socioeconomic barriers and relationship dynamics affecting lending.
Clinton Wilkins and Todd Veinotte discuss the importance of credit monitoring, especially in light of the recent Nova Scotia Power cyber breach affecting 200,000 customers. They recommend using free apps like Borrowell (Equifax) and Credit Karma (TransUnion) for weekly updates, which do not impact credit scores. For more comprehensive monitoring, paid services from Equifax and TransUnion cost around $30 monthly. They also advise setting fraud alerts and warnings on credit bureaus to prevent unauthorized account openings.
Todd Veinotte, Clinton Wilkins, and Trevor Gordon (of Home Equity Bank) discuss the importance of aging in place for retirees. They explore the benefits of a reverse mortgage, highlighting its flexibility and the freedom it provides to clients who use it. The program is equity-driven, not credit-driven, and caters to seniors with strong credit but limited cash flow. The three discuss eligibility, average coverage, and everything else you need to know about reverse mortgages.
Todd Veinotte and Clinton Wilkins welcome Trevor Gordon, Business Development Manager at Home Equity Bank, to discuss reverse mortgages. Trevor explains that Home Equity Bank has been providing reverse mortgages for over 30 years. He highlights that the average client and dispels common misconceptions about reverse mortgages, such as the bank taking the property, stressing their role in helping retirees age in place.
