Interview with Victoria-based Real Estate Investor Adam Gant: How Government Spending Affects Mortgage Affordability

Adam Gant is a Canadian real estate investor located in Victoria, BC, with experience in private funds as well as public REITs.  He has developed a career centered on housing, featuring extensive residential projects and innovative approaches such as shared equity that seek to enhance homeownership accessibility.  In addition to his role as an investor, Gant has supported charities that assist families and enhance housing access in North America and globally. 

Q: Higher government deficits are connected to higher borrowing costs in the economy. From your view, how do these deficits translate into mortgage rate increases for Canadians?

ADAM GANT: When governments run large deficits, they need to borrow heavily to fund their spending. That increases the demand for credit, which can push up interest rates, but the fiscal stimulus can also make it harder for the central banks to reduce the policy rate. Lenders then pass those higher costs along to borrowers, including homeowners. For someone with a mortgage, this doesn’t show up as an abstract policy issue; it shows up as a higher monthly payment. It’s a direct line from the federal books to the kitchen table. And the crazy thing is that home mortgage rates don’t show up anywhere in the calculation of inflation for the cost of housing.

Q: Many homeowners and buyers are feeling pressured by higher mortgage payments. How can the government reduce this pressure without cutting essential spending?

ADAM GANT: It’s a tough balance. Essential services like healthcare and infrastructure can’t be cut without consequences, but governments also need to show discipline in other areas. Better spending habits matched to actual taxes collected, and policies that grow the economy can all help ease the pressure without adding to the deficit. Clear communication from policymakers is also important because uncertainty alone can fuel higher rates. If Canadians see a plan to manage debt responsibly, it can help keep borrowing costs in check.

Q: How much of the current increase in mortgage rates is driven by government fiscal policy compared to other global economic factors?

ADAM GANT: It’s never just one factor. Global markets, inflation, and central bank policy all play a role. That said, government deficits are a key domestic driver. When Canada’s fiscal position looks weak, investors demand higher returns to lend money here, which raises rates. So, while international trends can’t be ignored, our own choices at home are a major part of the story. Homeowners are essentially caught in the middle of both.

Q: What long-term risks do you see if deficits continue to push mortgage rates higher, particularly for younger families trying to enter the housing market?

ADAM GANT: The main risk is that housing becomes less affordable for an entire generation. Higher rates mean higher carrying costs, and that locks many families out of homeownership altogether. Over time, it creates deeper inequality between those who already own and those who don’t. It can also slow down new housing construction, since developers are more cautious when financing is expensive. That makes the supply problem worse, and the cycle feeds on itself.

Q: Do you think solutions like shared equity or alternative financing models can help offset the impact of higher rates that are being driven by government deficits?

ADAM GANT: I do think they can play a role. Shared equity, for example, would lower the upfront burden on families and spread some of the risk. It doesn’t solve the issue of deficits or high rates, but it would give people more breathing room in a difficult market. The reality is that we need both better fiscal management at the government level and practical tools at the household level. No single solution will fix the problem, but together they can make housing more accessible despite the pressure of higher borrowing costs.