Build Wealth Canada Podcast

In 2026, it is estimated that nearly half of all Canadian mortgages will be up for renewal. This involves over 1 million households here in Canada. Because of the change in interest rates, some of these households could see their monthly payments jump by 15% to 20% on average—and in extreme cases, even higher.
That's the bad news.
The good news is that if your mortgage is coming up for renewal, the stress test requirements have likely changed since the last time you took out a mortgage years ago.
You actually have more power than ever to leave your current mortgage provider if you find a better mortgage elsewhere, and this is because the stress test has been removed in certain cases. Homeowners who were previously "trapped" with their current mortgage provider can now freely move to a competitor offering a lower rate. This forces the lenders to actually compete for your business.
In this episode, we're going to cover exactly how you can navigate all of these changes so you can keep more of your hard-earned money invested in your portfolio, rather than handing over an excessive amount to your mortgage provider.
Specifically, we're going to cover:
What Canadian mortgage holders need to know about these changes to the stress test to avoid "payment shock" and take advantage of the new switching flexibility.

How to choose between a fixed-rate vs. variable-rate mortgage with everything that is going on in Canada right now, based on the latest rates.

How to execute an advanced hybrid strategy using a re-advanceable mortgage if you have a lump sum of cash to invest, but are nervous about putting it all into the market at once with valuations at all-time highs.

To help us dive into all of this, I invited Sean Cooper back onto the show. Sean is the resident mortgage expert for this podcast, he's the bestselling author of the book "Burn Your Mortgage," and he's a fully licensed mortgage broker. He is who I go to and send all friends, family, and listeners of the show to for any mortgage-related questions and research. Because he actually does this as a full-time job, he is up to date on all the latest mortgage rules, changes, and the best interest rates currently available here in Canada.
If you have any mortgage-related questions, or if you just want to see Sean's up-to-date research on the best mortgages that he's been able to find across the dozens of lenders that he's constantly monitoring all over Canada, you can send him a message, or book a free call with him over at buildwealthcanada.ca/sean. 
Alright, let's get into the show!

One of the most common questions I get, and honestly one of the biggest sources of anxiety for anyone nearing financial independence is: "How much can I spend without running out of money once I quit my job and start living off my investments?"
It's one thing to see a big number in your investment account; it's another thing entirely to hit the "withdraw" button and start taking money out.
Research, and my own experience shows that many Canadians end up underspending. They live a smaller life than they need to simply because they don't have a structured process they can trust.
Some blindly follow the "4% rule," while others just live off dividends, pensions, and/or government benefits, never touching their principal. This often results in a massive amount of money left over when they pass away. That is money that could have been spent enjoying life, creating memories with family, or donating to charity, rather than leaving a giant inheritance, and a giant tax bill to the government.
So, how do we find that balance? How do we calculate a spending number that is safe, but still lets us enjoy our lives?
To answer this, I invited Thuy Lam back on the show. Thuy is a Certified Financial Planner with over 20 years in the industry who recently built my personal financial plan. We discuss the specific cashflow plan she created for us, and the relevant insights and best practices you can apply to your own situation.
We dig into four critical areas:
First, the "Safe Withdrawal" question: We move past the 4% rule and discuss how to determine a sustainable spending rate that factors in current market conditions.



Second, the "Bucketing Strategy.": Thuy breaks down how to allocate your portfolio for short-term spending versus long-term growth. This is huge for keeping anxiety low when the market drops.



"Stress Testing" your plan: We talk about why using a simple average rate of return (like 8%) is a dangerous mistake, and how Monte Carlo simulations can help you see if your plan survives extreme scenarios.



Dynamic Spending Adjustments: We cover exactly when to tighten the belt if markets underperform, and how to safely increase spending if returns are high, so you don't die with a giant portfolio you never got to enjoy.

We're going to cover all that and more. Enjoy the Episode!
Links from the episode:
Meet with Thuy: Free Introductory Meeting & Discount Link 
Free Access to my investing guide: What I Invest In and Why? (Kornel's Portfolio)

With the new year kicking off, investing is top of mind for many of us, especially with all the new contribution room that many of us just received in our different registered accounts here in Canada (TFSA, RRSP, RESP, FHSA).
Now before we decide what to invest in with our contributions this year, I thought it would be wise to look into:
-What are some of the major and common mistakes that Canadian investors make when they do their own analysis on which investment to buy?

-When we are looking to compare two investments, whether it's a mutual fund, or an ETF, what is the process that we should follow to make sure that we are doing appropriate and thorough due diligence?

-Are we paying near the low-end vs the top-end of the spectrum when it comes to fees? What would be considered a "high" fee vs a "low" fee for the Canadian investor?

-Are there other charges or fees that we should be mindful of in addition to just looking at the MER for an ETF or mutual fund?

-How to properly compare investments that we are considering?
We go into all that and more in this episode. Enjoy!
Resources Mentioned:
ETF Comparison Tool
ETF Guide: What I Invest In and Why?
Disclaimer:

This podcast is sponsored by BMO Exchange Traded Funds. Build Wealth Canada is compensated under this arrangement by BMO ETFs.
This communication is intended for information purposes only. This update has been prepared by Build Wealth Canada and represents their assessment at the time of publication. The comments contained do not necessarily represent the views of BMO Global Asset Management (BMO GAM). The views expressed by the host and the interviewee are subject to change without notice as markets change over time. The information contained herein is not, and should not be construed as, investment advice to any party. Investments should be evaluated relative to the individual's investment objectives and professional advice should be obtained with respect to any circumstance.
Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds managed by BMO GAM. Any reference to a particular company is for illustrative purposes only and should not be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any investment fund managed by BMO GAM is or will be invested. This social media network is an independent organization and is not affiliated with BMO GAM.

One of my favourite types of interviews is when I get to interview someone who has hit their financial independence or retirement number early, and then picking their brain on how they got there, what worked well for them, what didn't, what mistakes they could have avoided, and learning what makes them feel happy and fulfilled both before and after hitting financial independence.
Well this time, I got to do this with one of the most famous personal finance experts in Canada, David Chilton, who, as you may know, was also one of the dragons on Dragon's Den.
Dave's bestselling book, The Wealthy Barber, was actually the first personal finance book that I ever read. I read it decades ago in high school, and in a way, it actually started me down this path of early financial independence.
Dave has recently released a massive update to the book, so we cover what has changed in personal finance and investing in Canada over the years, and what Canadians need to know about now when it comes to personal finance and investing in Canada. 
I'm incredibly grateful that Dave has chosen to spend so much of his time educating Canadians and trying to improve financial literacy here in Canada. You can definitely tell that he's not doing it for some massive financial gain, and is genuinely trying to help.
Let's get into the interview.

Today, we have a Canadian guest who has literally done over 400 interviews with different personal finance experts over the years, many of which were specifically for Canadians. Today, I pick his brain on the common conclusions, best practices, and recurring advice he's heard after interviewing so many personal finance experts.
My guest, Kyle Prevost, is also part of the FIRE (financial independence, retire early) movement and was able to hit his financial independence number at a very early age. I pick his brain on what safe withdrawal rate he has settled on and why, based on his extensive research, so that he doesn't run out of money in his early retirement and is able to live off his portfolio permanently.
I also ask him what has really moved the needle for him in terms of growing his net worth to reach financial independence so quickly, and what he does now to help ensure that he stays financially independent and doesn't have to go back to work, when we have the next major stock market crash.
Free tickets to the Canadian Financial Summit: 
https://buildwealthcanada.ca/summit
The Summit is from October 22-25 this year so be sure to grab your free tickets at the link above. You can also see all the speakers and talks at that link too.
Questions Covered:
After interviewing well over 400 personal finance experts over the years, what are some of the most impactful lessons or recurring pieces of advice that you've heard?


A few years ago, you created a retirement course where I remember my favourite section being your findings on the safe withdrawal rate - in other words, how much can we all withdraw from our investment portfolio to be able to live off it long-term? What are your current thoughts on a safe withdrawal rate, based on the research that you've seen, and have your views changed over time?


I know living abroad and travelling is something that you and your wife have done a lot of. When it comes to saving money on travel, can you give us 3 to 5 pieces of advice that you found really moved the needle for you when it comes to either not overpaying, or where you were able to really maximize the value that you received per dollar spent?


Now that you've hit FI years ago, do you still find earning more money to be a motivating factor for you? The last time you were on the show, you mentioned that it was as it lets you experience more when it comes to travel (among other things). Now that you've been FI for even longer, and since the markets have done so well over that time, do you find accumulating more money is still the motivator it once was? Or do you now get motivation and fulfillment from other things?


If both you and your wife were to stop generating any additional income through part-time work or side projects, how would you approach your cash position and asset allocation? Follow up: Since you are still generating some income as a household post FI, how does that change how much you keep in cash and how you structure your asset allocation? 

With the markets at all time highs again, there are definitely those that are getting nervous and worrying about a drop in the markets in the near future. What do you personally do to ensure you don't run out of money and are forced to return to 9-5 work if we were to have another 2008 scenario?


Over the decades, what factors have truly moved the needle for you in terms of net worth generation?

Tell us where we can hear more from you and about the Canadian Financial Summit.