This weeks podcast explores the financial implications of the recent Federal GDP Numbers and the complications they create for the Bank of Canada. Furthermore we explore the revived buzzword “Extend and Pretend” in reference to the Banks extending amortization periods for mortgage holders. Historically it involved banks extending loans to borrowers who were struggling to repay their debts, but instead of recognizing the loans as non-performing or defaulting, the banks would "pretend" that the loans were performing by extending the payment terms. Essentially, the banks would grant borrowers temporary reprieve by extending their loan terms, often by several years, while still counting the loans as performing on their books. This practice allows the banks to avoid recognizing losses on their balance sheets and maintain the appearance of financial health. In the context of mortgage lending, "extend and pretend" can refer to a bank's decision to extend the amortization period of a loan in order to reduce the borrower's monthly payments. This can provide temporary relief to borrowers who are struggling to make their payments, but it also increases the overall cost of the loan due to the additional interest that accrues over the longer repayment period. We talk about how to best deal with this scenario so that you can come out without relatively unscathed when it comes time to renew your property.We also look at the recent federal budget and the government’s infinite wisdom in when it comes to spending more than we earn, pushing the federal deficit to -$40.1 billion, nearly $10 billion more than what has been forecasted in the 6 months prior.The country's overall debt is set to rise to $1.31 trillion over the next five years, and with continued high interest rates, the federal government is projected to pay $43.9 billion next year just servicing Canada's debt. We also consider the Fed’s decision to backtrack on their decision to ban Foreign Buyers. Stay tuned to hear about the changes to that policy, a quick market update where we discuss the return of multiple offers, how the Median price of Single Family homes is up a staggering $132,000 this month and sales volumes are up 40%! _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089 [email protected] www.thevancouverlife.com

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“What did the council decide on item 42?” — answered with the speaker and the moment.

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