This couple is in serious trouble and they don't even know it.

The mortgage debt is real, while the paper value of their properties is precarious; they have very meagre savings considering they have no work pensions plans; and they have yet to experience the changing financial conditions accompanying parenthood.

Sell the rental property before the child is born and get out of the syndicated mortgage investment.  Start using the RRSP contribution room.
And please tell me where you're getting 1.8% on a savings account. 

If young couples like this, leveraged to the hilt on money-losing rental properties, is responsible for the GTA real estate mania, it's going to be a pretty rude awakening.