Dissecting the risky business of private mortgages

Plus, the Nazi scandal playing out on the Hill and Ford's ongoing Greenbelt woes [The Star] First Up [By Kevin Jiang] By Kevin Jiang Good morning. Here’s the latest on the rise of risky private mortgages, Justin Trudeau facing pressure from the Parliamentary Nazi scandal and persistent Greenbelt questions dogging Doug Ford. DON’T MISS Dreamstime Photo housing [Ontarians are picking up risky private mortgages as banks turn more away]( Since 2019, Ontario has seen a sharp rise in the number of people seeking private mortgages instead of going through traditional banks, Jeremy Nuttall reports — a trend that could throw many into dire financial straits should interest rates continue to rise. The high rates today have contributed to banks being more selective with who they give mortgages to, pushing many people to alternative avenues. Unfortunately, that often comes at a cost, as many private lenders charge “consistently and relentlessly” higher interest rates, experts say. [Here’s what you need to know as monetary pressures mount](. - Bad news for: The mortgage holders, but also Canada’s wider economy. Struggling households means weaker market activity for the real estate industry and a drop in consumption — [possibly leading to a recession should rates continue to climb](. - Meanwhile: Although the Bank of Canada raised rates in order to combat inflation, inflation has remained stubbornly high, having risen for two consecutive months to four per cent in August. [It’s upping the odds of yet another interest rate hike in October, experts say](. Canadian Press/Adrian Wyld federal politics [Justin Trudeau is being urged to apologize after the House Speaker resigned over the Nazi scandal]( Anthony Rota took unprecedented steps to resign as Speaker of the House of Commons Tuesday, after inviting and directing two standing ovations for a veteran of a Nazi SS unit during Ukrainian president Volodymyr Zelenskyy’s address to parliament. Though Rota took sole responsibility for the blunder, opposition parties are looking to Trudeau to apologize for what’s become a national humiliation on the global stage. Conservative Leader Pierre Poilievre accused Trudeau, who hasn’t appeared in the House since Zelenskyy’s visit last Friday, of “hiding under a rock.” NDP Leader Jagmeet Singh echoed calls for an apology, noting that the incident harmed Ukraine’s war efforts and Canada’s Jewish community. [Get the lowdown on the developing scandal](. - Why it matters: [Canada’s blunder has already been spun into an anti-Ukraine disinformation campaign in Russia](. Since the start of Russia’s invasion, President Vladimir Putin has tried to justify his war as an attempt to “de-Nazify” Ukraine. - Susan Delacourt’s take: Although Canada made the mistake, it may be Ukraine and Zelenskyy who pay the price. The president came to Canada expecting to drum up support, [but left with a tarnished reputation](. Canadian Press/Chris Young greenbelt [“Their Vegas story is not adding up.” Doug Ford is being dogged by new Greenbelt questions]( The hangover from disgraced ex-minister Kaleed Rasheed’s controversial 2020 trip to Las Vegas continues to hound Doug Ford’s Progressive Conservatives as they attempt to clean up the fallout from their collapsed $8.28-billion Greenbelt land swap plans. Ford fielded additional questions about the voyage Tuesday, which was taken by Rasheed alongside Ford’s former principal secretary, Amin Massoudi, and Jae Truesdell, who resigned last week as the premier’s director of housing policy. In a report from Ontario’s integrity commissioner, the three gave incorrect dates for the trip under oath and alleged their meeting there with developer Shakir Rehmatullah was by chance. [Here’s what MPPs asked and how Ford’s government responded](. - Context: In the years following the Vegas trip, [Rehmatullah attended Ford’s daughter’s wedding and sold land removed from the Greenbelt for what appeared to be a huge profit](. - More: As CTV reported last week, Rehmatullah and the Ford government trio all had spa massages booked at the same time during their trip. “Should the people of Ontario accept that government policy was being decided on a massage table in Vegas?” NDP Leader Marit Stiles asked during question period Tuesday. WHAT ELSE [Jagmeet Singh also saw “very credible” intelligence linking India to a Canadian’s killing]( he says. Olivia Chow is heading to Ottawa to garner federal [support for a “new deal” to fix Toronto’s deep financial woes](. [Peter Nygard lured victims into a pad-locked bedroom at his Toronto headquarters]( a Crown attorney said at trial. This Canadian tech company allegedly implicated in foreign spying [received millions from the Ontario government](. The location of 15 “potential” graves has been [found near a former Yukon residential school](. The head of the TTC says [further transit closures are possible after the derailment of the aging SRT](. Feeling the squeeze of rising costs? [Here’s how to apply for EI and Ontario Works](. Do you know your rights? A tenant advocate [debunks nine myths about renting in Ontario](. [The Hollywood writers strike is officially over]( after guild leaders approved a contract with studios. [Canada’s Olympic soccer champs have won a spot at Paris 2024]( defend their gold medal. What’s next for the Greenbelt? Star reporters will answer your questions this afternoon— [join in here at 1 p.m.]( [What’s the Blue Jays magic number to clinch AL wild card after losing to Yankees?]( POV Canadian Press/Nathan Denette [Pink umbrellas, a heart-shaped pond, a dog fountain. Meet the man who put some needed whimsy in Toronto’s public parks.]( CLOSE-UP Jim Watson/AFP via Getty Images MICHIGAN: U.S. President Joe Biden joined picketing auto-workers outside a General Motors Service Parts Operations plant Tuesday. [As the American strike nears the two-week mark, Canadian parts-makers are watching closely](. Thank you for reading. You can reach me and the First Up team at [firstup@thestar.ca](mailto:firstup@thestar.ca?source=newsletter&utm_source=ts_nl&utm_medium=emailutm_email=6C53B63A8E3FAD70AD4EF13004527437&utm_campaign=frst_200219). I’ll see you back here tomorrow. If you're not enjoying these emails, please tell us how we can make them better by emailing newsletterfeedback@thestar.ca. Or, if you'd prefer, you can unsubscribe from this newsletter by clicking the first link below. 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