Business
The Mortgage Maelstrom: Navigating the Impending Financial Tempest in Canada
From The Opposition with Dan Knight substack
As renewal rates surge and interest rates soar, Canadian households stand on the precipice of a fiscal fallout that could redefine the nation’s economic landscape
As we wade through the current economic climate, it’s becoming increasingly clear that a storm is brewing on the Canadian horizon, one that could sweep away the financial stability of countless households. The heart of this looming tempest? The mortgage market—specifically, the shock awaiting about 60% of mortgage holders in the next three years as their terms come up for renewal.
RBC has crunched the numbers and the forecast is grim. More than $186 billion in mortgages is set to renew in 2024 alone, and if today’s interest rates hold, homeowners could see their payments leap by a staggering 32%. And that’s just the beginning. The following year, $315 billion worth of mortgages are on the renewal chopping block, many of which are variable-rate mortgages, potentially pushing the payment shock to 33%.
What’s the root cause? It’s the interest rates—sitting at a 5% benchmark, the highest we’ve seen since the turn of the millennium. If there’s no significant decrease, we’re looking at a tidal wave of credit losses come 2025. And let’s not forget the elephant in the room: those with variable-rate mortgages could face a payment shock as high as 84% by 2026 if the rates stay put.
Here’s the scoop, folks. Bank of Canada Governor Tiff Macklem laid out a cold hard truth: fiscal and monetary policy are at loggerheads. While the central bank is straining every sinew to wrestle down inflation with rate hikes, the federal and provincial governments are lighting the fuse with their spending, fueling the very inflation the Bank of Canada is trying to stamp out.
In the red corner, we’ve got the Bank of Canada, gloves on, ready to slug inflation down to its target by 2025. In the blue corner, Trudeau’s government, doling out dollars like there’s no tomorrow. What does this mean for John and Jane Doe on Main Street? As their mortgage renewals roll in, they’re staring down the barrel of a 32% to a mind-boggling 84% payment shock.
Folks, let’s cut to the chase. This economic quagmire we’re sinking into? It’s got Trudeau’s fingerprints all over it. The fabric of Canadian society is getting shredded not by accident, but by a government playing fast and loose with fiscal policy. The Bank of Canada is scrambling to counteract with rate hikes, but Trudeau’s Liberals seem hell-bent on doling out dollars like candy on Halloween, inflaming inflation and leaving families to foot the bill.
As for Trudeau, he’s steering the ship with a blindfold on, and the polls? They’re reading like an obituary for the Liberals’ prospects. Come the next federal election, if these mortgage hikes hit as hard as predicted, Trudeau’s so-called economic strategy could be the very thing that buries his political future. We’re not just talking about a swing in the voting booths; we’re talking about a full-scale revolt from a populace that’s had enough of being ignored in the face of an economic abyss.
As Canadians navigate the turbulent waters of an economy where the dream of homeownership slips through their fingers and the basic necessity of putting food on the table becomes a herculean task, the political pageantry of promised dental plans rings hollow. When the ballots are drawn, the echo of dissatisfaction will thunder across the voting booths. Yes, my dear readers, as the national mood simmers with the desire for change, there’s a palpable sense that a political reckoning looms on the horizon — a red wedding in the electoral sense, where the old guard may be unseated in a dramatic upheaval.
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Dan Knight
From LifeSiteNews
Regeneron said it will act ethically when it acquires data on 15 million Americans from 23andMe.
A Big Pharma company will acquire genetic data on 15 million people after purchasing DNA testing company 23andMe in a bankruptcy auction.
“Drugmaker Regeneron Pharmaceuticals will buy genetic testing firm 23andMe for $256 million through a bankruptcy auction,” CNN reported.
“Regeneron said it will comply with 23andMe’s privacy policies and applicable laws with respect to the use of customer data and that it is ready to detail its intended use of the data to a court-appointed overseer,” the news outlet reported.
23andMe already suffered a privacy breach of its sensitive genetic information.
While Regeneron said it will protect data, many people may still have concerns.
Users wishing to delete their genetic data can do so, according to California Attorney General Rob Bonta, who issued a “consumer alert” when 23andMe first filed for bankruptcy in March. He explained how people can log into their account and delete their data.
Quick Hit:
President Trump on Friday threatened Apple with a 25% tariff if iPhones sold in the U.S. are not manufactured domestically. In a post to Truth Social, Trump said Apple must stop producing iPhones in India or China and bring manufacturing back to the United States.
Key Details:
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In a Truth Social post, Trump wrote: “I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
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Apple’s stock reportedly dropped around 3% in premarket trading following Trump’s announcement.
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Trump’s demand follows a broader push to penalize companies that manufacture overseas. He also floated a 50% tariff on European Union imports.
Diving Deeper:
President Donald Trump on Friday issued a fresh warning to Apple, demanding the tech giant bring iPhone manufacturing back to the United States or face a stiff tariff. In a Truth Social post, Trump directly addressed Apple CEO Tim Cook, declaring that iPhones sold in the U.S. must no longer be produced in India or any other country abroad.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
The statement rattled markets early Friday, with Apple shares falling about 3% in premarket trading.
While Apple has historically relied on China for the bulk of its iPhone production, it has recently begun shifting some operations to India—moves largely aimed at diversifying its supply chain amid ongoing geopolitical tensions and pandemic-era disruptions. Trump’s post signals that even this shift away from China may not be sufficient to satisfy his America-first trade vision.
According to a recent Politico report, Trump and Cook met Tuesday at the White House. Though Cook has made overtures toward Trump in the past—including attending his inauguration and pledging a $1 million donation—Apple has continued its offshore production strategy, frustrating Trump’s push for domestic job creation.
Despite this, Apple has committed to a $500 billion investment in the U.S., including development of AI server infrastructure in Houston, Texas. Whether that’s enough to blunt Trump’s tariff threat remains to be seen.
In a separate post Friday, Trump also advocated for a sweeping 50% tariff on goods imported from the European Union, signaling a renewed appetite for aggressive trade measures should he return to office.
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