Varun Kohli June 27, 2023 No Comments

   We always talk about how resilient the GTA and southern Ontario real estate market is. We’ve watched year after year as the market absorbs shocks, adapts, and continues to thrive. Over the long term, price growth remains healthy, demand remains strong, and supply delivers, but never enough to cool price growth momentum. In April, Toronto’s housing market saw its third consecutive monthly price increase, indicating a rebound amidst limited housing supply. The average home price in the Greater Toronto Area rose by four percent from the previous month to $1.153 million, as reported by the Toronto Regional Real Estate Board. However, prices remain below the average of $1.25 million recorded in April 2022. Despite this, the number of homes sold increased by around nine percent month-over-month to 7,531, although it is still slightly down by over five percent compared to the previous year. The recent surge in interest rates has deterred some potential buyers, but the current market data for spring indicates a resurgence of interest, given the low supply and fewer listings available.

            We’re now looking at what could be the early stages of a period of housing price growth recovery in Toronto and southern Ontario from the shock of COVID-19. As the housing market in Toronto and Ontario shows signs of rebounding and picks up momentum, homeowners may find themselves considering alternative financing options. One such option that should be considered is a private second mortgage with Tembo Financial, which offers several advantages for borrowers seeking additional funds. In this article, we’ll explore three key benefits of opting for a private second mortgage in a rebounding housing market.

  1. Access to Quick and Flexible Financing:

In a rapidly evolving housing market, timing is crucial. Tembo Financial offers our clients streamlined approval processes and faster access to funds compared to traditional lending institutions. We have taken calls, booked appointments, processed paperwork, and funded clients with cash in the bank all within 24 hours. Speed is our passion and rapid approvals with robust customer service and tailor-made financial services from real estate experts forms the bedrock of what we deliver. This means that our clients can quickly capitalize on emerging opportunities or address immediate financial needs. Furthermore, Tembo has far more flexible lending criteria, making it easier for clients to qualify for a second mortgage, especially if they have less-than-perfect credit, a large personal debt load, gaps in employment history, or limited income documentation.

  1. Increased Borrowing Power:

With a private second mortgage with Tembo Financial, clients can tap into their property’s equity, unlocking additional borrowing power. This can be particularly advantageous in a rebounding housing market with increasing property values. Sales are picking up, prices are rising again, and demand remains ironclad. By leveraging your home’s equity, prospective clients can secure a substantial loan amount to fund various endeavors, such as home renovations, debt consolidation, or investment opportunities. Consider using your Tembo private second mortgage to remodel a kitchen, finish a basement and transform it into a rental property, or to set aside a down payment for a preconstruction property. The increased borrowing power offered by a private second mortgage with Tembo empowers our clients to seize opportunities and leverage their property’s increasing value for financial growth. The opportunities are endless, and of course, we are here to assist you in maximizing the potential of what you can do with your funds. We help clients every day.

  1. Diversification of Financing Sources:

A private second mortgage with Tembo provides clients with an alternative financing source outside the traditional banking system. This diversification of funding can be beneficial, especially in a rebounding housing market where traditional lenders may impose stricter lending criteria or offer limited loan options. Banks are growing increasingly conservative in their lending practices, are setting aside capital for anticipated defaults, and are facing limits to their ability to expand operations, particularly in the U.S. Higher rates means higher debt servicing costs, which the big banks are increasingly weary of. The approvals process of getting official approval for a mortgage can take a long time. By securing a private second mortgage, borrowers can mitigate reliance on a single lender and expand their financing options. A private second mortgage also allows our clients to avoid tapping into their savings, our other financial accounts to do what they need. This is a big advantage that countless clients have benefitted from. Instead of drawing on savings or an RRSP to finance a down payment for a property, or to help their children buy a home, they can tap into a private second mortgage with Tembo. This not only increases the chances of obtaining the required funds but also allows borrowers to tailor their loan terms to better suit their unique financial situation and goals.

  1. Debt consolidation:

            Debt loads can act as an anchor on financial goals and credit scores, leaving borrowers with few options, stress, and the failure to qualify for a mortgage at a big five bank. But taking out a private second mortgage with Tembo can offer an efficient solution for debt consolidation. By combining multiple debts into a single loan, borrowers can simplify their financial obligations and potentially reduce their monthly payments. Wiping out high interest debts can also help boost a credit score. Debt consolidation through a private second mortgage not only provides convenience but also allows homeowners to take advantage of the equity in their property to secure a larger loan amount and potentially save on interest costs over time. This strategic approach to managing debt can help borrowers regain control over their finances and work towards becoming debt-free sooner.

In a Toronto and southern Ontario housing market that shows signs of accelerating price growth, a private second mortgage with Tembo can be an attractive financing solution for clients. The advantages of quick and flexible financing, increased borrowing power, diversification of funding sources, and debt consolidation to boost your credit score make private second mortgages an appealing option for those seeking additional funds. Please do not hesitate to contact Tembo Financial at 1-844-238-6717 to consult with our experts on how a second private mortgage can help you achieve your financial goals and resolve your money problems!

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