Make Money Count

In this episode, Marcus hits the air remotely from Greece. The guys discuss how inflation and the interest rate environment are going to impact mortgage lenders and their lending policies towards Canadian borrowers. Last week we all heard that inflation in Canada hit 7.7%. It’s impact on the economy is everywhere; at the pump, the grocery store, and at restaurants. How is it impacting Canadian Lenders and how will it impact your next mortgage? What changes might we see going forward and what can you do to prepare?

Some key takeaways include:

After the 2008 crisis, the maximum Loan to Value Canadians can borrrow against their property was dropped from 95% to 80%. When the economy struggles or faces uncertainty, changes are usually made. We have not seen anything drastic yet, but if we continue down this current path, changes can't be ruled out. A & B lenders tightening their HELOC requirements would not come as a huge surprise. We are already seeing some 2nd mortgage lenders not offer renewals to existing clients, which means that either they are not receiving payouts at their usual rate or they are now reconsidering a former qualified borrower's credentials for this economic environment. Neither of these are great signs.

When Trump was in Power, he told Jerome Powell not to increase interest rates; Powell listened. The chair of the Federal Reserve is appointed by the President and the Governor of the Bank of Canada is appointed by the Prime Minister. Why would they bite the hands that feed them? Our Country leaders have the same agendas too; to stay in power.

Trump wanted to keep the economy as strong as it could be leading up to his next election. As a result of these actions, a recession that was already looming pre-pandemic has just been delayed and maybe made worse. It's tough to have a Central Bank that is closely tied to its Country's Government that is always thinking about re-election.

Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.

0:00 - Intro

#Inflation #InterestRates #Economics

How’s the current economic outlook? Pretty bleak. Interest rates are rising, inflation is still sky-high, and asset prices have taken a nose-dive. We may be approaching the peak of economic uncertainty, or maybe that’s just the optimism from summer beginning! Have a listen to the episode to get a more in-depth view from the Mortgage Broker Team at Cannect Home Financing.

A few key takeaways:

The rapid rise in interest rates is changing the way qualified Canadians borrow money.

We discussed in the previous episode how and why there could be a take off in the home equity loan market with interest rates rising. Therefore, we look at how will this impact private lenders though. Even with the potential for a drop in real estate prices, this could prove to be a tailwind for the risk level of private home equity loans. Cannect prides itself in helping home owners with ample home equity repair their covanent and get to lower cost capital. But if more loans are given to borrowers that have no covenant to repair, then the overall risk profile of these loans will drop. The real estate market may look uncertain, but this could be a very strong silver lining.

Cannect isn’t a small company, it’s just “folksy”

You’ll have to listen to get a better breakdown, but the essence of this statement is that Cannect is not a large institution like a bank. We are a company of regular people that are just like our borrowers. We’ve grown slowly, we take pride in being direct-to-borrower and direct-to-investor. We love being able to regularly communicate with our borrowers and investors like we are doing right now. The fact that we are this way is just one of the reasons why we feel very confident going into difficult economic times.

Marcus Tzaferis and the Cannect Team

Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.

This episode examines the current economic outlook, and it is not too pretty. High inflation is the problem the Bank of Canada is prioritizing, which is why interest rates are rising, which is why stock prices are falling and home ownership is more expensive. What is the next domino to fall? Maybe housing prices? Have a listen to learn more!

Some key takeaways to consider:

1. Refinance your unsecured debt while home prices are high.

If real estate values fall, this will reduce the amount you can borrow against it and reduce the amount of unsecured credit you can wipe off your bureau. So act soon if you are in this position.

2. What might this lead to? A take off in the home equity loan market!

A lot of people took advantage of rock bottom interest rates two years ago and refinanced their debt. If qualified borrowers need more money now, they may find it is in their best interest to just take a second mortgage at a higher interest rate than refinance the whole mortgage to access more equity at today's 5-year fixed or variable rate. If you are a qualified borrower and need to access more funds, speak to a Cannect agent to see whether a second mortgage or a complete refinance is your best path to long-term savings.

3. "Don't fight the Fed"

With the Bank of Canada's priority being to bring down inflation, rates should continue to rise and asset prices should continue to fall. If they fall so much that the BoC has to shift their priorities, their actions will reflect this change. Interest rates may drop back down again and, subsequently, asset prices would rise back up. The BoC has fires to put out, and the way they decide to do it will shape the economy for the foreseeable future.

Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.

Marcus Tzaferis and the Cannect Team

#Inflation #MortgageBroker #MakeMoneyCount

This week's episode takes a deeper dive into the Russia/Ukraine crisis and what it might lead to in this current economy. As we discussed last week, there are a lot of macroeconomic trends taking effect right now even without this crisis including inflation, increasing interest rates, surging oil prices, and more. If this crisis continues, how will it impact these current trends we are seeing? Have a listen to the episode to find out.

The Bank of Canada is meeting next on April 13th. Not only will any rate changes resulting from that meeting be important, but so will the way it gets communicated to us. We will see who wins the $50 bet. Matt says no change, Marcus says 25 bps, and Justin says 50 bps.

Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.

0:00 - Intro

This week's episode is all about how the economy maintains good order and balance. On Wednesday, the Bank of Canada increased the overnight rate from 0.25% to 0.50%, the first rate increase since 2018. How does this impact inflation? How does it impact the Canadian people? Have a listen to the episode to find out!

Here is what you can take away from this episode:

1. Will this rate hike solve our inflation problems? Probably not.

When interest rates increase, the impact that has on an economy isn't realized for 12 - 18 months. Consumers were so tight for cash during COVID though, and many of them still are, that this was not a possibility last year. The Bank of Canada will spend the next few years hiking interest rates at a steady clip to see where the proper balance is of fighting inflation fears vs. those of a bear market.

2. Energy policy has a huge effect on foreign policy.

Energy is a valuable resource. Every country has a vested interest in it's cost and accessibility. Some countries are mass producers of energy, while others rely on importing it to keep their economy afloat. When inflation leads to a skyrocketing cost of energy, countries pay attention.

3. We STILL love the variable rate.

The fixed rate has been pumped up by talks of 6, maybe even 8 interest rate hikes in 2022, so if the year continues and we find we aren't on pace to reach those marks, the fixed rate should come back down a bit. The variable rate is still at such a huge discount to prime, so we feel that if you are okay with taking a bit of risk, the variable rate looks really good. 

Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.

0:00 - Intro

This week's episode examines the current geopolitical situations Canadians have been exposed to and how they may have an impact on mortgage rates. These events may have a huge impact, a marginal impact, or even no impact at all. Regardless of which you think it will be, these are the times Canadians should be re-evaluating their mortgage. You want to make sure the mortgage you currently have accurately reflects where you think interest rates will be going. Have a listen to the episode to get a better breakdown.

If you re-evaluate your mortgage and decide a change is necessary, give Cannect a call. We can get you locked into a fixed rate now if you are concerned several rate hikes are on the horizon. Or if you don't think rates are going anywhere for a while and you currently have a variable rate, we might be able to get you a larger discount on prime than you currently have. Maybe you don't want to think about your mortgage at all, in which case give us a call and we can evaluate it for you.

Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.

New Make Money Count episode! It has been a while, but with all the talks of inflation and rising interest rates, we had to hop on to give our two cents. Inflation may seem scary, but as you'll hear in the episode, we don't believe the actions taken by the Bank of Canada will be as drastic as the markets may be pricing in because:

3:18 - Why Marcus thinks inflation issues might be exaggerated.

6:35 - Interest rates will go up. Where are they now?

8:34 - Media outlets and big brokers all thought we would see an overnight rate hike in January.

13:12 - Marcus still thinks the discount on the current variable rate is too good to pass up.

16:43 - Calling Cannect is the best way to determine the best course of action for your mortgage.

19:19 - The mortgage finance companies are setting the market for rates and banks decide when they want to compete.

21:00 - People are still in need of funds as a result of Covid

26:29 - Follow us at makemoneycount.com!

This week's episode was an information-packed one about the current state of our economy. All we hear about on TV are interest rates and inflation. People also look to the bond market to get an idea of where interest rates are going, but does this always paint the entire picture? Have a listen to the episode to get the full story!

Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.

This week's episode is all about how to get the most out of Cannect. Whether you are looking to renew, refinance, make a purchase, take out a home equity loan, or make an investment, Cannect has salaried employees readily available to help you make these decisions. In fact, some of these employees shared their most frequently-asked questions on the show with us today. Have a listen to hear what those questions are.

2:45 - Justin introduces the theme of this week’s episode.

3:55 - Where do you start when you want to buy your first property?

10:52 - if you want to take a variable rate mortgage, how does one know when to lock in to a faxed rate?

14:40 - What rates can Cannect offer? Is this the only question one should be asking?

19:21 - Banks are incentivized to sell clients higher rates.

21:27 - How long does the mortgage process take?

23:01 - Looking to draw equity to invest? We have something to suggest!

26:17- How Cannect makes document collecting easy.

29:49 - Cannect’s job is to make you qualify.

33:15 - Ways Cannect will make your life better.

35:35 - Even after closing a deal, Cannect continues to work for the borrower.

36:40 - Why Cannect is a unique investment opportunity.

This week's episode examined Cannect from the investor's point of view. If you have heard us discuss our investment fund before and maybe wanted to learn a bit more about the advantages it can provide for you, then this is a great episode to have a listen to.

A point that we brought up on the episode a few times that we always like to reiterate is that know one will ever be more confident in Cannect as an investment than we will. Our directors are investors, our staff are investors, and the friends and family of our staff are investors. We always want our investors to feel like partners rather than investors. If you have any questions about the fund after hearing the episode, don't hesitate to give us a call. We'd love to speak to you!

Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.

Click here to connect the the best mortgage brokers in Canada, Cannect Home Financing.