Second Mortgages 

Second Mortgages can be taken against your property in Ontario by using Tembo Financial. 

We work with our clients to get the best mortgage rates in Ontario that are tailored to fit your financial needs. 

Second mortgages are registered against the property, just as a first mortgage would be. 

Tembo Financial is able to give second mortgages to clients for a variety of different reasons.

Second mortgages can be used for a deposit for a new purchase, renovations and repairs to your home, stopping power of sale, and equity advances. 

For any information regarding how you can get a second mortgage anywhere in Ontario, including: North York, Ottawa, Brampton, London, Waterloo, Pickering, Barrie or more, contact Tembo Financial. 

Third mortgages in Ontario

Third mortgages in Ontario are easier to get than before with a loan from Tembo Financial. 

If you are anywhere in Ontario, such as Cambridge, Waterloo, Ottawa, Pickering, Scarborough, Brampton, Mississauga and more, Tembo Financial can help. 

Third mortgages, much like any other mortgages, register against your current property to help you get money into your pocket. 

The money can be used for anything you need, including: home renovation and repairs, bridge financing for a new property, or anything else that you may need. 

The reason that third mortgages may be hard to obtain is based off of insurance on the property. Tembo financial is happy to assist you through this process to help you get the best solutions to your financial needs.

Contact us today if you are looking for a Third mortgages in Ontario. 

Who is Tiff Macklem?

The newly minted Governor of the Bank of Canada has enormous power over the Canadian economy and real estate market given his authority over interest rate setting. Like his international counterparts, Governor Macklem is a ‘master of the universe’ with tremendous economic and financial influence, and political and social clout. Like his predecessor, Macklem will arguably have significantly more pull on the economy than most of our senior elected politicians. Monetary policy is far more immediate and widely felt than fiscal policy, it takes weeks and months for government bureaucracies to roll out increases in funding and new program spending. Even when funding is announced, it’s usually extremely targeted, or is affected through taxes deferrals and signing. Mortgage deferrals and CERB are obvious exemptions as they are direct transfers to individuals and businesses. 

So who is Tiff? Tembo will use this blog as an opportunity to gives readers an outline of the background and experience of our new master of the universe. Mr. Macklem is a born and bred ‘Laurentian Elite,’ a member of one of the few elite corporate, political, and bureaucratic families that have been identified as the traditional ‘ruling class’ of Canadian society (particularly in the Toronto to Montreal corridor). His father was once the CFO of Birks, and other members of his family were physicians and members of prominent families. Tiff went to private Selwyn House in Montreal, living in the affluent Westmount neighbourhood. He completed his PhD in Economics from Western and has worked at the BOC as a career bureaucrat since the early 1980s. Macklem rose to serve as Deputy Governor from 2004-2007, was a senior bureaucrat at the Federal Ministry of Finance from 2007-2010, and was Senior Deputy Governor of the BOC from 2010 to 2014.

Before being appointed Governor, Macklem was the Dean of UofT’s Rotman School of Management. He also notably served on the Board of Scotiabank from 2015 to 2020. So what we have is a son of the aristocracy who went to private school and finished a PhD in Economics who worked as a career bureaucrat for over two decades. Mr. Maklem is well connected, well respected, and in tune with the country’s senior banking elites. He has a more outgoing and colourful persona than the usually drab and grey Poloz who preceded him. All in all, Maklem is a status quo, safe career pick BOC Governor who will be uncontroversial in setting rates and who has a solid power base in the BOC bureaucracy and is well connected to Bay Street. 

July and august end on high notes

According to the Toronto Regional Real Estate Board, sales in the GTA soared over 40% in August. Average prices went up to $951K, a 20% increase from August 2019.
Listings also rose, by over 57% compared to August 2019. The surge in August’s listings is more proof of the unfolding trend Tembo has followed – that of people moving away from cities and downtown condos, to the tranquility, privacy, and space of the rural, suburban, and exurban regions. Realtors across the GTA are advising clients interested in selling to list quickly as demand is strong, supply is limited, and prices are in good shape. Note is being made of the ongoing shift to the countryside, with those with means keeping condos as a ‘foothold’ in the cities. 
Realtors believe that the U.S. Presidential election could inject a significant degree of political and social uncertainty that would have ripple effects on GTA real estate, but few expect any of the two outcomes to seriously affect the market. The consensus seems to be the Spring of 2021 as a point of uncertainty – from deferred mortgage payments, ongoing economic aftershocks, the outcome of a vaccine for COVID-19, and the threats of a second wave. With the BOC (Bank of Canada) again maintaining steady interest rates, monetary policy and fiscal policy are being put into maximum effect to maintain strong real estate demand and prices. 
The new hot spots for freehold, or large property homes, are Collingwood and the Niagara region. Realtors are noting the continued ‘aggressive’ moves to these areas. The big word in the market is uncertainty, but positive numbers show an underlying health and ample buying power. Another piece of positive news, uncertainty aside, is that housing starts surged in August, to over 260,000 new units nationally – this is the strongest showing since 2007. Developers are working in overdrive despite COVID-19 to build the homes that Canadians need. 

Second Mortgages

Second Mortgages can be taken against your property in Ontario by working Tembo Financial as your lender.

We work with our clients to get the best mortgage rates in Ontario that are tailored to fit your financial needs.

Second mortgages are registered against the property, just as a first mortgage would be.

Tembo Financial is able to give second mortgages to clients for a variety of different reasons.

Second mortgages can be used for a deposit for a new purchase, renovations and repairs to your home, stopping power of sale, and equity advances.

For any information regarding how you can get a second mortgage anywhere in Ontario, including: North York, Ottawa, Brampton, London, Waterloo, Pickering, Barrie or more, contact Tembo Financial.

The trends continue

In this week’s blog post, Tembo will outline stories which highlight the big accelerating trends in Canadian real estate: falling momentum in the condo market, the ‘back to the land’ trend, and the continued strength of Montreal’s real estate market. 
While condo rents are beginning to fall in Toronto due to weakening demand and a move to place condo units (both newly built and older stock onto the market quickly to soak up tenants), the overall cost of finding a decent unit is still high. Zoocasa recently released an analysis of rent vs ownership for condos, the findings were that in only two pockets of the city East York and Rouge Hill (southeast Scarborough), did the cost of buying a condo make long term sense. Zoocasa’s analysis finds that if the cost of a condo exceeds 15 years of rent, it’s smarter to rent than to buy. Anything that costs 1-15 years of rent is a no brainer to scoop up, and again, that was only the case in East York and south east Scarborough. Areas in Toronto with the most expensive condos (portlands, beaches, midtown, and the Annex, cost on average over 31 years of rent. So while the excitement and frenzy over buying a condo is beginning to wane, rents are still very high by any measure.
A Toronto couple with two kids (successful middle aged professionals) were featured in a Toronto Life article. They spent $750,000 buying a two storey four bedroom farmhouse close to Beaver Valley Ski Club in Markdale, a town just south west of Collingwood. Both had been in the real estate market beforehand, and had bought a small very older built house at Dundas and Pape that they bought for half a million dollars at the height of the 2008 crisis – the perfect and opportune time to buy. The house sold significantly under asking. The couple eventually fell in the love with the tranquility and peace of rural Ontario (as did their young children), and decided to live in a rural community. They bought the farmhouse not long ago, the husband commutes to Toronto and stays in their Leslieville house (they kept it) and the wife works from home. The children are ‘thriving’ in the countryside. This is a story that will repeat itself in the coming years. 
Montreal’s booming real estate sector caught the eye of Tembo months ago, but the momentum keeps building in strength for Quebec’s largest city. Townhouses in Montreal’s downtown core sell for 20% less per square foot than their counterparts in downtown Toronto. The city is vast, and has long had a reputation for extremely cheap rents given its size and job opportunities. High rise and condo construction in the city is accelerating, and the effects of COVID-19 are starting to wear off. The Quebec government arguably employed the most loose and relaxed lock down policies of any province in Canada. Montreal is not just a logistics hub and major port, it is also home to a thriving financial sector (most futures in Canada are marketed, created, and sold here). Montreal’s innovativeness in the financial space is internationally renowned. The city also has a strong service sector, government offices, and a fair bit of manufacturing (oil refining). Prices in Montreal are rising quickly, so take advantage while the city is still affordable (relatively). 

Third mortgages in Ontario

Third mortgages in Ontario are easier to get than before with a loan from Tembo Financial.

If you are anywhere in Ontario, such as Cambridge, Waterloo, Ottawa, Pickering, Scarborough, Brampton, Mississauga and more, Tembo Financial can help.

Third mortgages, much like any other mortgages, register against your current property to help you get money into your pocket.

The money can be used for anything you need, including: home renovation and repairs, bridge financing for a new property, or anything else that you may need.

The reason that third mortgages may be hard to obtain is based off of insurance on the property. Tembo financial is happy to assist you through this process to help you get the best solutions to your financial needs.

Contact us today if you are looking for a Third mortgages in Ontario.

On the new Tory leader and the state of Canadian federal politics

Erin O’Toole beat out Peter Mackay, the front runner, to claim the crown and leadership of the federal Tory Party this weekend.
O’Toole won by portraying himself as a more right wing Tory than the moderate approach of Mackay, and by a huge influx of votes from socially conservative members of the party. The win was clear and decisive and likely to leave no bad blood. Party disunity is unlikely, although moderates are likely to be disheartened by the continued inability of any candidate to win without the kingmaker votes of social Conservatives. Despite their political edge, Social Conservatives are never satisfied by government policy for the purposes of staying popular with the ‘mainstream’, and so a strange and repetitive political cycle continues to play out. 
O’Toole is the son of former Ontario PC MPP John O’Toole, a well liked and uncontroversial politician from the Mike Harris and Tim Hudak era of the party. He is a veteran and former officer, having graduated from the Royal Military College and having served as a pilot. After completing a law degree at Dalhousie, O’Toole had a successful career as a corporate lawyer. He entered Federal politics in the Harper era, and had a brief stint as Minister for Veterans Affairs. O’Toole is the father of two children, 47 years old, and is the first GTA based Tory leader in many, many decades. At heart, he is a political moderate – he does not have a record espousing any particularly hard right beliefs and has avoided controversy.
O’Toole will likely face an election in the next 12-24 months, or perhaps sooner. To the Liberal Party, O’Toole will appear to be the less dynamic, less attractive, and less appealing leadership contender, especially to younger women and millenials. While the Liberal brand has been battered, the Prime Minister is still liked a big chunk of the electorate and has the fiscal firepower to boost his party’s fortuned in the event of an election. The Liberal Party will also likely claim to be a steady and compassionate hand in dealing with the COVID-19 pandemic than a blue blooded fiscal conservative. The timing of the election will be interesting, as will be the future platform and policy positioning of O’Toole. Either way, he should not be underestimated, this is a decorated, hard working military officer with a robust professional background and plenty of political smarts. 

Equity Advances: What are they and how do they work?

Obtaining an equity advance on your home can be simple. An equity advance mean that you are taking some of the money out on your home. For an equity advance, Tembo would place a mortgage on the property, and advance you the funds prior to selling the property.

They are really quite simple. If you are planning to sell your current property, applying for an equity advance in Ontario can give you the access to the funds you need for any of the following: Deposit loans, legal fees, moving expenses or anything else that you need during the time of the sale of your property.

Little documentation will be needed for the equity advance in Ontario. Tembo would be looking at the quickest and easiest solution for you to have access to the funds tied up in your property!

On our unbelievable real estate market

Summer’s are usually hot with real estate activity in the GTA and southern Ontario, but last month was especially fiery.
Despite everything that’s happened, a 17% price increase was recorded. Furthermore, sales soared over 30% from July 2019. Home prices now average $943,710. As Tembo noted weeks ago, the trend toward low rise and more private homes in the exurbs, outer rim suburbs and rural areas is continuing and accelerating – prices jumped in Durham, Orangeville, and South Simcoe counties. Prices in these areas went up by 12.2% ,14%, and 14.1% respectively on average. 
In these areas, detached homes and condo apartments were king when it comes to purchases. Meanwhile, in the downtown core, stats show that condo sales are starting to slow down. There was a 50% decline in condo sales recorded through the period of the COVID-19 pandemic. But even as sales of condos collapsed, prices remain high because of limited inventory, declines in building output, and an ongoing stream of buyers. Many owners who turned to rent out their units on Airbnb are now opting to sell because of closed borders, drying up immigration, and less travel. This shows that immigration, traditionally a pillar of real estate resilience, does not have to be high or on the up for prices and demand to be healthy.
With the Bank of Canada keeping rates steady and easing ‘Stress Tests’ requirements on homebuyers, the market has all the momentum and energy it needs with price signals in the green. The growth in activity also reaffirms that there is still ample foreign capital being invested into Canadian real estate for security and safety purposes. The good news will likely continue into August and September before losing some steam in fall and early winter. The big question remains how many homes will come on the market when government and banking measures to prop up mortgage payments dries up. It’s becoming clear that the Feds are eager to unwind the massive spending on COVID-19 relief and support that’s taken the federal debt up to over $1 trillion. 
While effectively every region in Ontario is now in Stage 3 and given daily cases have been well under 100 for some time, we are likely to see more normalization in the coming weeks and months if the good news continues. Meanwhile, Ontario’s deficit has risen to just under $40 billion, with debt well over $400 billion. Additionally, Canada’s credit rating went down a notch given all the spending and higher debts we’ve seen. Good news in the real estate market will come at a cost at some point, and COVID-19’s after effects will remain with us for quite some time.