Varun Kohli December 7, 2022 No Comments

Tembo has been the go-to for thousands of customers across southern Ontario for second or third private mortgages for years. We’ve moved with extreme speed to help our customers receive their 2nd or 3rd mortgage funds. We’ve helped accommodate our clients’ diverse needs creatively and thoughtfully. And all with great and consistent customer service. We’re pleased to announce that we are now providing clients with 1st private mortgages, to help them achieve their dreams of home ownership. We are offering competitive prices and rates, speedy service, simple and quick approvals processes, and great customer service – as always. In today’s market, with ever higher big bank mortgage rates, slow bank mortgage approvals, and the need for flexibility, Tembo is well positioned to help you.

Inflationary pressures, rising interest rates, and uncertainty is slowing the amount of overall mortgage debt growth in the broader economy. New mortgage loans at the big banks dropped by 8% in the 2nd quarter, with bank refinancing seeing the biggest drop; by over 13% in the same timeframe. Canada Mortgage Housing Corporation data is showing that more consumers are turning to fixed rate, stable mortgages with shorter time commitments – given they’re wary of higher rates coming down the track in the near term. If you want to read more about the history of inflation, interest rates, and our track record of solid predictions on where rates have gone (and will go), please read our blogs and subscribe to our popular newsletter here. Crucially, though, the CMHC released data showing that more people are being declined for mortgages at Canada’s big banks. Big bank loan qualifications and stress tests are really starting to bite in an environment of ever higher interest rates and high inflation. If you’ve been declined for a big bank mortgage and think you’ve run out of options, please get in touch with us and consider a private 1st mortgage with Tembo.

ReMax recently released its predictions for the national housing market for next year. They see prices falling by some 3% nationally next year, at which point the market will return to a more ‘balanced’ state, without the same degree of ups and downs that we’ve seen due to COVID and inflation. The ‘wildcare’ to ReMax’s prediction was how high the Bank of Canada would take interest rates. Inflation hasn’t gone down by a significant margin in three months, and the language of the Bank of Canada Governor Tiff Macklem hasn’t softened up. The Bank of Canada has repeatedly said that they don’t see enough evidence of a healthy down trend in inflation for us to have reached the ‘peak’ of higher rates. So the reality is that rates are likely going up at least one more time over the next few months. In an environment with ever higher rates, you need to consider your options, and now, you should consider Tembo for your first mortgage.

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